The Impact of Environmental Effects of Sustainable Development on Direct Investments

Abstract

On the background of the exponential decrease of natural resources and the continuous and accentuated degradation of the quality of the environment, ensuring the sustainability of economic and social processes has become a reality of everyday life. However, the primary focus is on the degradation of the quality of the environment, which has the main effect of global warming. The idea of sustainable development is based on 3 fundamental pillars, namely the economic, the social and last but not least the environmental. In contemporary society, direct investment is often seen as a vital source for development and even sustainable development. Thus, the desire for development must go hand in hand with sustainable development, implicitly with the quality of the surrounding environment. At the level of the European Union, it is important that all member countries implement common measures on sustainable development. This is the generous context in which the paper aims to analyse the impact of environmental effects in the volume of direct investments. We will analyse the countries of European country in the period 2004-2020, and we will use the Stata program. Thus, following the running of the multiple regression equation, we found that in attracting direct investments in European country in the period 2004-2020, the environmental effects have a positive influence.