The impact of South-South and North-South FDI on energy intensity in developing countries

Herzer, Dierk; Schmelmer, Niklas

The impact of South-South and North-South FDI on energy intensity in developing countries

Publication date

2024-12-30

Document type

Working Paper

Author

Herzer, Dierk

Schmelmer, Niklas

Organisational unit

VWL, insb. Konjunktur und Wachstum

URL

http://www.accessecon.com/Pubs/EB/2024/Volume44/EB-24-V44-I4-P108.pdf

URI

https://openhsu.ub.hsu-hh.de/handle/10.24405/23851

Publisher

University of Illinois

Series or journal

Economics Bulletin

ISSN

1545-2921

Periodical volume

44

Periodical issue

4

First page

1367

Last page

1377

Part of the university bibliography

✅

Language

English

Abstract

This study is the first to examine the impact of both North-South FDI and South-South FDI on energy intensity in developing countries. It is also the first in the FDI-energy intensity literature to carefully control for the endogeneity of FDI using several IV techniques, as well as the first in this literature to use a panel Granger causality approach. We find that while South-South FDI contributes to reductions in energy intensity in developing countries, there is no evidence that North-South FDI reduces energy intensity in developing countries. This finding holds even when we use panel cointegration methods.

Version

Published version

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