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Decomposing the asymmetric effects of terrorism and FDI on carbon emission: evidence from fragile economies

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Abstract

Terrorism is a universal phenomenon that creates economic, political, social, and environmental problems. The literature infers that little consideration is delivered to the nexus of terrorism and pollution emissions. To the best of the authors’ knowledge, this study is a pioneer that investigates the linear/symmetric and non-linear/asymmetric impacts of foreign direct investment and terrorism on the CO2 emissions for ten fragile economies. For the empirical task, the study collected data for time 1973 to 2019 and employed ARDL and NARDL approaches. The findings demonstrate an asymmetric association between foreign direct investment (FDI), terrorism, and CO2 emissions. The findings infer that positive changes in FDI and terrorism have a significant positive impact on CO2 emissions. However, the negative changes in FDI and terrorism significantly impact CO2 emissions in most economies. Furthermore, the NARDL approach delivers more explanatory and powerful estimates for selected countries in contrast to the ARDL approach. On the basis of these findings, the study delivers some appropriate policies to combat terrorism.

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Availability of data and materials

The datasets used and analyzed during the current study are available from the corresponding author on reasonable request.

Notes

  1. Stability of the parameters is signified by “S,” and if the parameters are unstable, it is denoted by “US.”.

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Funding

This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors.

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Authors and Affiliations

  1. Qingdao Huanghai University, Qingdao, China

    Xue Gao

  2. College of Economics and Management, Shandong University of Science and Technology, Qingdao, China

    Xue Gao

  3. School of Economics, Qingdao University, Qingdao, China

    **n Li

  4. School of Business, Zhengzhou University, Henan, China

    Muhammad Zubair Chishti

  5. Department of Economics, University of Chakwal, Punjab, Pakistan

    Muhammad Zubair Chishti

  6. School of Economics, Quaid-I-Azam University, Islamabad, Pakistan

    Sana Ullah

  7. Pakistan Institute of Development Economics (PIDE), Islamabad, Pakistan

    Sidra Sohail

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  1. Xue Gao
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  2. **n Li
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  4. Sana Ullah
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Contributions

X.G., X.L., M.Z.C., S.U., and S.S. contributed to the design of the study, data collection, data analysis, and development of the manuscript. The authors read and approved the final manuscript.

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Correspondence to Xue Gao.

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Gao, X., Li, X., Chishti, M.Z. et al. Decomposing the asymmetric effects of terrorism and FDI on carbon emission: evidence from fragile economies. Environ Sci Pollut Res 29, 41125–41139 (2022). https://doi.org/10.1007/s11356-021-16955-z

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