Affiliation:
1. CHRIST University (Deemed), India
2. Department of Commerce, Manipal Academy of Higher Education, Manipal, India
Abstract
The study tries to investigate the long run and short run relationship between trade openness (TO), political stability (PO), and FDI on sustainable development of select developed and developing nations. Time series data from 1995 to 2021 of about 25 economies—10 developed economies and 15 developing economies—was collected and analyzed using Phillips Perron Fisher panel unit root test, panel auto regressive distributed lag (PARDL) model, and panel fully modified least squares/fully modified OLS. From the result, it found that FDI and TO are positively contributing to sustainability development index (SDI) in developing countries rather than the developed countries in the long run. In addition to this, changes in the SDI score is significantly influenced by the present and past import and export activities in developed as well as developing economies in the short run.
Reference41 articles.
1. Role of energy consumption and trade openness towards environmental sustainability in Turkey
2. Is Free Trade Good for the Environment?
3. Policy responses to exogenous shocks in developing countries.;B.Balassa;The American Economic Review,1986
4. Long-term Nexus Between Openness, Income, and Environmental Quality
5. BuchnerB.FalconerA.Hervé-MignucciM.TrabacchiC.BrinkmanM. (2011). The landscape of climate finance. Climate Policy Initiative.