Analyzing the Mediating Role of Exports, FDI, and Eco-Efficiency in Innovation-Energy-Output Nexus
Download| Volume 3 Issue 2 2022 | |
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| Author(s): |
Muhammad Asghar
Imran Sharif Chaudhry
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| Abstract | The development of nations depends more on innovation and energy consumption than on factor endowment. Investing more, producing more with less, and exporting surplus production assures sustained growth. This study utilizes the panel data from 2010 to 2019 from 36 developed and 80 developing countries using the structural equation modeling (SEM) approach. The study confirms the positive impact of innovation and energy consumption on foreign direct investment, exports, and output. However, the impact of innovation on output is higher in developing countries and the impact of energy consumption is higher in developed countries. The impact of energy consumption on eco-efficiency with undesirable output (EEUO) is negative. Exports of goods and services, foreign direct investment, and eco-efficiency also positively impacts the output. The study validates the endogenous innovation growth model and ecological modernization theory. The study also identifies exports, investment, and eco-efficiency as mediating variables that foster the impact of innovation and energy consumption on output. The study suggests more focus on innovation, eco-efficiency, and clean energy consumption for developed and developing countries. Although developed countries are less prone to this issue, a potential environmental concern exists for sustainable growth and development. |
| Keywords | Innovation; Energy consumption; Eco-efficiency with Undesirable Output; Structural Equation Modeling. |
| Year | 2022 |
| Volume | 3 |
| Issue | 2 |
| Type | Research paper, manuscript, article |
| Recognized by | Higher Education Commission of Pakistan, HEC | Category | "Y" | Journal Name | ILMA Journal of Social Sciences & Economics | Publisher Name | ILMA University | Jel Classification | - | DOI | http://dx.doi.org/ | ISSN no (E, Electronic) | 2790-5896 | ISSN no (P, Print) | 2709-2232 | Country | Pakistan | City | Karachi | Institution Type | University | Journal Type | Open Access | Manuscript Processing | Blind Peer Reviewed | Format | Paper Link | http://ijsse.ilmauniversity.edu.pk/arc/Vol3/pdf/v2/6.pdf | Page | - |