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<p>Our study aims to capture the complex connections between remittances, Foreign&#xa0;Direct Investment (FDI), and carbon dioxide (CO<sub>2</sub>) emissions in the Indian context&#xa0;on 31 years of longitudinal data. Our study employed methodologies such as Vector Autoregression (VAR), ARIMA, and Granger causality. Our findings highlight that remittances and FDI have significant but distinct impacts on CO<sub>2</sub> emissions. Our results are essential for operational decisions and policies that may offer guidance to pilot a country on a sustainable&#xa0;economic growth trajectory. This study builds on the EKC framework to analyze short-term dynamics of FDI and remittances on CO<sub>2</sub> emissions using ARIMA and VAR models, filling a gap in the Indian context. Furthermore, our methodological rigour is particularly relevant for countries at low and middle-development stages; however, it remains limited in analysing temporal dynamics and the intricate linkages between economic variables and environmental factors.</p>

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Green or Grey? Decoding the Impact of FDI and Remittances on CO2 Emissions

  • 期刊论文

  • 发表日期：

    2025年3月14日

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  • Pankaj Tiwari

摘要

Our study aims to capture the complex connections between remittances, Foreign Direct Investment (FDI), and carbon dioxide (CO2) emissions in the Indian context on 31 years of longitudinal data. Our study employed methodologies such as Vector Autoregression (VAR), ARIMA, and Granger causality. Our findings highlight that remittances and FDI have significant but distinct impacts on CO2 emissions. Our results are essential for operational decisions and policies that may offer guidance to pilot a country on a sustainable economic growth trajectory. This study builds on the EKC framework to analyze short-term dynamics of FDI and remittances on CO2 emissions using ARIMA and VAR models, filling a gap in the Indian context. Furthermore, our methodological rigour is particularly relevant for countries at low and middle-development stages; however, it remains limited in analysing temporal dynamics and the intricate linkages between economic variables and environmental factors.