The Impact of Foreign Direct Investment on CO2 Emissions in Middle East and North African Countries in the Period 1990-2020: Using the Panel ARDL Model

To determine whether foreign direct investment (FDI) promotes environmental degradation or aids in the adoption of cleaner technology between 1990 and 2020, the article will examine the relationship between FDI and CO2 emissions in Middle Eastern and North African (MENA) nations. utilizing the Panel ARDL Model to investigate both immediate and long-term impacts. The analysis discovered a long-term positive correlation between GDP, CO2 emissions, population increase, power consumption, and FDI. Open trade lowers emissions. The GDP and power consumption were found to considerably increase emissions in the short-term coefficients; however, the Error Correction Term indicated a slow adjustment to equilibrium. The study is constrained by the availability of data, possible measurement mistakes, regional variations, and the consequences of short-term fluctuation. For sustainability, policymakers should support clean technology, control foreign direct investment in industries that pollute, and support trade liberalization. In MENA and East Asia, the study examines FDI's environmental effects in a novel way. JEL Classification : F21 ; Q53 ; Q56 ; O13 ; C23.