The Causality Relationship between Foreign Direct Investment and Renewable Energy in G20 and OECD Countries: 2005-2017

İngilizce (OpenAlex)

This study investigates the link between foreign direct investment (FDI) and renewable energy (RE) as a primary energy source for G20 countries, OECD member countries and Worldwide. For this purpose, bootstrap panel Granger Causality Analysis developed by Konya (2006) was employed for over the period 2005-2017 to examine the existence of causality. The analysis results indicate that there is bidirectional causality between FDI and RE for the G20 and the worldwide. On the other hand, for OECD member countries, there is a one-way causality from RE to FDI. The findings state that foreign direct investments carry the developments that will make renewable energy use widespread, and the use of renewable energy makes the country suitable for foreign direct investment.