Foreign Indirect Investment, Energy Consumption, and Economic Growth
This study mainly investigates the effects of foreign indirect investment, energy consumption, political institution on the economic growth in by using a 15selected Southern Asian countries over the period 1990-2016. With applying panel data fixed effect model, estimation results show that trade liberalization has a significantly positive impact on economic growth. An increase in domestic investment enhance significantly on the economic growth. Less corruption, higher government effeteness, and strong political stability increase significantly economic growth. However, FDI inflow and FDI outflow from county are lack of evidence about increasing economic growth. The empirical results show that CO2 emission and fossil fuel energy consumption are increasing significantly economic growth. Renewable energy consumption has a significantly negative impact on economic growth. The empirical results provide largely relevant to academics, governments and policymakers who are interested in the effects of foreign direct investment, political institution, and economic growth relations.
Keyword - Foreign Direct Investment, Political Institution, Energy Consumption, Economic Growth JEL: F21, F13, O43, Q4