Linking FDI and Sustainable Environment in EU Countries

Sustainability

Adina Dornean¹  Irina Chiriac²  Valentina Diana Rusu² 

[1] Department of Finance, Money and Public Administration, Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iasi, 700505 Iasi, Romania;Social Sciences and Humanities Research Department, Institute of Interdisciplinary Research, Alexandru Ioan Cuza University, 700107 Iasi, Romania;

关键词: the investors profile;    ease of doing business;    FDI;    sustainable environment;    economic growth;    climate change;   

DOI  :  10.3390/su14010196

来源: DOAJ

【 摘 要 】

The aim of this study is to emphasize the link between the foreign direct investments (FDIs) and the sustainable environment in EU countries. We also focus on investigating the influence of other factors related to business environment on FDIs, considering the investors’ sustainable choice for the host countries, grouped according to FTSE Russell criteria. Using panel methodology and applying Ordinary Least Squares (OLS) method of data analysis, the authors reached the conclusion that a better-rated business environment, with concern for sustainability, has more of a chance to attract larger sums of FDIs, mostly in the case of developed economies. This fact proves that the main advantage considered by a foreign investor in developed EU countries is represented by CO₂ emissions (sustainable environment) and a good ease of doing business environment. The study highlights the factors that influence the decision of investing in developed countries, rather than in emerging and frontier ones. This paper contributes to the existing literature by identifying the group of countries which need a more sustainable approach to attract a large amount of FDIs, given that the inflow of FDIs is a crucial factor of economic growth, a possible source of innovation and technology, and a way to reduce poverty.

【 授权许可】

Unknown