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Environmental degradation, characterized by the deterioration of the natural environment through the depletion of resources, destruction of ecosystems, and pollution, poses significant challenges globally. This systematic literature review addresses the pressing issue of environmental degradation, particularly focusing on the relationship between foreign direct investment (FDI), financial development, and carbon emissions. The review identifies research gaps, posing insightful questions regarding government policies, regional variations, and the trade-offs between economic growth and environmental sustainability. The review methodically identifies and examines sixty research articles, selected through the PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) framework, from reputable databases, namely Emerald and Web of Science (WoS). This rigorous selection process ensures the inclusion of high-quality studies that provide a comprehensive understanding of the topic. Furthermore, this review also sheds light on the sustainable role of financial system as a critical intermediary in the flow of funds. By thoroughly examining the shortlisted research articles, the study seeks to understand the complex connections between foreign investments, financial structures, and their influence on the environment.

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Interlinkage Between Foreign Direct Investment and Carbon Emissions with Special Reference to Financial Development of the Countries—Findings of Some Selected Literature

  • 会议论文

  • 发表日期：

    2025年

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  • Ashis Kashyap,
  • Farah Hussain

摘要

Environmental degradation, characterized by the deterioration of the natural environment through the depletion of resources, destruction of ecosystems, and pollution, poses significant challenges globally. This systematic literature review addresses the pressing issue of environmental degradation, particularly focusing on the relationship between foreign direct investment (FDI), financial development, and carbon emissions. The review identifies research gaps, posing insightful questions regarding government policies, regional variations, and the trade-offs between economic growth and environmental sustainability. The review methodically identifies and examines sixty research articles, selected through the PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) framework, from reputable databases, namely Emerald and Web of Science (WoS). This rigorous selection process ensures the inclusion of high-quality studies that provide a comprehensive understanding of the topic. Furthermore, this review also sheds light on the sustainable role of financial system as a critical intermediary in the flow of funds. By thoroughly examining the shortlisted research articles, the study seeks to understand the complex connections between foreign investments, financial structures, and their influence on the environment.