Impact of fdi and pm2.5 concentration on economic growth in countries around the world - sustainable development lessons for Vietnam

Abstract

In the six years between 2018 and 2023, the study method examines the effects of (FDI) and PM2.5 fine dust concentration on economic growth, especially in countries ranked by IQAir as having the highest levels of pollution in the world. The study intends to elucidate the relationship between FDI attraction and the environment in the present, post-COVID-19 era, and whether or not there is a propensity to adopt sustainable development goals.Since environmental pollution, climate change, and nature are currently causing detrimental changes that affect human life in every country, they are critical global issues that must be resolved for the benefit of all people. The study analyzes the individual and cumulative effects of each variable using sophisticated econometric models, including System-GMM, FEM, and REM models. In order to guarantee reliable results and accurately reflect the elements influencing each nation's economy, control variables like GDP per capita and inflation are included. The findings of the study highlight the serious negative impact of fine particulate matter concentrations on economic growth and the positive but insignificant impact of foreign direct investment. According to the findings of the study, international investors are increasingly funding sustainable, environmentally friendly and clean technologies. As a result, they are no longer investing in high-tech sectors that contribute to environmental pollution. Every country must have reasonable strategies in limiting air pollution if it wants to grow its economy and increase its attractiveness to foreign direct investment. The health of its people is also significantly improved at the same time. In addition to providing a new perspective on the correlation between attracting foreign capital and environmental performance, the paper offers practical tactical and legal recommendations that each country can use to successfully implement the Sustainable Development Goals proposed by the United Nations in 2015. This will help make the planet greener and improve the quality of life of each individual in all areas, from health to material and economic