The relationship between economic growth, population, FDI, globalization, and CO2 emissions in OIC member countries

Year 2025, Volume: 8 Issue: 1, 161 - 176, 31.03.2025

Hafidz Zainul Mustofa

https://doi.org/10.35208/ert.1470522

Abstract

The concentration of CO2 emissions in OIC member countries has decreased over the past decade. The theory of sustainable growth suggests that increased CO2 emissions can be influenced by various factors such as economic growth, population, FDI, and globalization, and vice versa. However, economic growth, population, FDI, and globalization in OIC member countries have all increased, which contradicts the theory of sustainable growth. Therefore, this study aims to test and analyze the effects of economic growth, population, FDI, and globalization on CO2 emission concentrations in OIC member countries. This research is quantitative, using data on economic growth, population, FDI, globalization index, economic globalization, political globalization, and social globalization for 53 OIC member countries over the period from 1992 to 2020, obtained from various sources such as the World Bank, UNCTAD, and the KOF Index of Globalization. The data analysis technique used is the System GMM. The results of this study show that economic growth and increased FDI have a significant effect on increasing CO2 emission concentrations. In contrast, increases in population and globalization have a reducing effect on CO2 emission concentrations in OIC member countries.

Keywords

CO2 emission, OIC countries, Sustainable growth, System GMM

Project Number

1

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