Technology transfer for green investments: exploring how technology transfer through foreign direct investments can contribute to sustainable practices and reduced environmental impact in OIC economies

Estimating the asymmetrical influence of foreign direct investment is the primary goal of the current study. In addition, further controlled variables affect environmental degradation in OIC nations. Due to this, current research employs the asymmetric (NPARDL) approach and the data period from 1980 to 2021 to estimate about viability of the EKC (environmental Kuznets curve) theory. The study utilized greenhouse gas (GHG) including emissions of carbon dioxide (CO₂), nitrous oxide (N₂O), methane (CH₄), and ecological footprint as substantial parameters of environmental quality. A nonlinear link between foreign direct investments, trade openness, economic growth, urbanization, energy consumption, and environmental pollution with CO₂, N₂O, CH₄, and ecological footprint in the OIC nations is confirmed by the study’s outcomes, which however reveals inconsistent results. Furthermore, the results also show that wrong conclusions might result from disregarding intrinsic nonlinearities. The study’s conclusions provide the most important recommendations for decision-makers.