The relationship between investment determinants and environmental sustainability: Evidence through meta-analysis

Abstract

There has been a lot of scholarly interest in investigating the relationship between investment determinants and environmental sustainability. The objective of this study is to utilise meta-analysis to combine 43861 observations from 82 studies that look at how environmental sustainability determinants (Carbon emission, greenhouse gas emission, climate change) and investment determinants, such as foreign direct investment, trade openness, international trade, globalisation, and green innovation, connected. The findings show that there is a significant and positive association between environmental sustainability and Foreign direct investment, trade openness, international trade, and globalization. Additionally, the association between carbon emission and green innovation was found negative. Also, institutional quality, regulatory quality, and market type moderate the relationship between investment determinants and environmental sustainability. Studies show that introducing institutional quality as a moderator for Foreign direct investment and trade openness negatively affects carbon emissions. The present study also stipulates policy implications for countries to reduce carbon emissions.