How to Increase Foreign Direct Investment Inflows in OIC Countries: A Green Economy Model

Muhammad Adnan Azzaki

doi:10.21580/economica.2023.14.1.18160

Authors

Muhammad Adnan Azzaki UIN Sunan Kalijaga Yogyakarta

DOI:

https://doi.org/10.21580/economica.2023.14.1.18160

Keywords:

FDI, Institutional Quality, Green Economy

Abstract

As the global community faces the urgent challenge of climate change, developing countries within the Organization of Islamic Cooperation (OIC) region strive to attract Foreign Direct Investment (FDI) to implement sustainable solutions and transition towards a green economy. This study investigates the key determinants that influence FDI inflows to OIC countries to address climate change issues. By employing a Green Economy Model, this research seeks to identify the factors that attract foreign investors to support sustainable projects and environmentally friendly initiatives in the OIC region. The analysis includes an examination of economic, policy-related, technological, and environmental factors affecting FDI inflows, with a focus on renewable energy, clean technologies, and carbon reduction projects. The findings from this study aim to provide valuable insights for policymakers and stakeholders in OIC countries, fostering the adoption of effective strategies to attract foreign investments that can accelerate the fight against climate change while promoting sustainable economic growth.

Downloads

Download data is not yet available.

References

Adam, A. H. (2020). The Insecure Investment Climate & It ‟ s Impact on Foreign Direct Investment Flows in SUDAN. 4464(10), 819–834. https://doi.org/10.36349/easjebm.2020.v03i10.008

Adebayo, T. S. (2022). Environmental consequences of fossil fuel in Spain amidst renewable energy consumption : a new insights from the wavelet-based Granger causality approach. International Journal of Sustainable Development & World Ecology, 00(00), 1–14. https://doi.org/10.1080/13504509.2022.2054877

Adegboye, F. B., Osabohien, R., Olokoyo, F. O., Matthew, O., & Adediran, O. (2020). Institutional quality, foreign direct investment, and economic development in sub-Saharan Africa. Humanities and Social Sciences Communications, 7(1), 1–9. https://doi.org/10.1057/s41599-020-0529-x

Adhikary, B. K. (2017). Factors influencing foreign direct investment in South Asian economies: A comparative analysis. South Asian Journal of Business Studies, 6(1), 8–37. https://doi.org/10.1108/SAJBS-10-2015-0070

Agustya, I. R. E. (2017). Determinan Investasi Asing Langsung oleh Perusahaan Multinasional : Studi Kasus Sektor Industri Provinsi Jawa Barat Tahun 2013-2016 SKRIPSI Oleh : Nama Nomor Mahasiswa Program Studi : Ilza Rafha Erlita Agustya : Ilmu Ekonomi Universitas Islam Indonesia FA. https://dspace.uii.ac.id/handle/123456789/5341

Ahmad, F., Draz, M. U., Su, L., Ozturk, I., Rauf, A., & Ali, S. (2019). Impact of FDI Inflows on Poverty Reduction in the ASEAN and SAARC Economies. 1– 24.

Ali, E. B., Anufriev, V. P., & Amfo, B. (2021). Green economy implementation in Ghana as a road map for a sustainable development drive: A review. Scientific African, 12, e00756. https://doi.org/10.1016/j.sciaf.2021.e00756

Ali, S., Yusop, Z., Kaliappan, S. R., & Chin, L. (2020). Dynamic common correlated effects of trade openness , FDI , and institutional performance on environmental quality : evidence from OIC countries.

Asongu, S. A., & Odhiambo, N. M. (2019). Foreign direct investment , information technology and economic growth dynamics in Sub-Saharan Africa. Telecommunications Policy, March, 101838.

Barbier, E. B. (2016). Building the green economy. Canadian Public Policy, 42(1), S1–S9. https://doi.org/10.3138/cpp.2015-017.

Kaminski, J. (2021). The OIC and the Paris 2015 Climate Change Agreement : Islam and the The OIC and the Paris 2015 Climate Change Agreement : Islam and the Environment. January 2019. https://doi.org/10.1007/978-3- 319-92561-5

Loiseau, E., Saikku, L., Antikainen, R., Droste, N., Hansjürgens, B., Pitkänen, K., Leskinen, P., Kuikman, P., & Thomsen, M. (2016). Green economy and related concepts: An overview. Journal of Cleaner Production, 139, 361– 371. https://doi.org/10.1016/j.jclepro.2016.08.024

Lucke, N., & Eichler, S. (2016). Foreign direct investment: the role of institutional and cultural determinants. Applied Economics, 48(11), 935–956. https://doi.org/10.1080/00036846.2015.1090551

Nguyen, H. H. (2020). Impact of Foreign Direct Investment and International Trade on Economic Growth : Empirical Study in Vietnam. 7(3), 323–331. https://doi.org/10.13106/jafeb.2020.vol7.no3.323.

Rodrigues, M., & Franco, M. (2023). Green Innovation in Small and Medium-Sized Enterprises (SMEs): A Qualitative Approach. Sustainability, 15(5), 4510.

Qoyum, A., Al Hashfi, R. U., Zusryn, A. S., Kusuma, H., & Qizam, I. (2021). Does an Islamic-SRI portfolio really matter? Empirical application of valuation models in Indonesia. Borsa Istanbul Review, 21(2), 105–124. https://doi.org/10.1016/j.bir.2020.08.002

Qoyum, A., Sakti, M. R. P., Thaker, H. M. T., & AlHashfi, R. U. (2022). Does the islamic label indicate good environmental, social, and governance (ESG) performance? Evidence from sharia-compliant firms in Indonesia and Malaysia. Borsa Istanbul Review, 22(2), 306–320. https://doi.org/10.1016/j.bir.2021.06.001

Shehzad, K., Xiaoxing, L., & Sarfraz, M. (2021). Envisaging the asymmetrical association among FDI , ICT , and climate change : a case from developing country. Carbon Management, 0(0), 1–15. https://doi.org/10.1080/17583004.2021.1890449

UNCTAD, W. (2020). World investment report 2020: International production beyond the pandemic. United Nations New York and Geneva.