THE ASSOCIATION BETWEEN CO2 AND ECONOMIC GROWTH IN CENTRAL ASIAN COUNTRIES: PANEL DATA APPROACH

Abstract

The purpose of this paper is to investigate the relationship between CO2, Economic growth and FDI in Central Asian countries including Uzbekistan, Kazakhstan, Kyrgyzstan, and Tajikistan, collecting the secondary data from 2000 to 2020 by utilize panel regression, namely Pooled OLS, Random Effect and Fixed Effect Models, furthermore, panel causality test was utilized to see the causal relationship between variables of our interest. Ultimately, this paper adds to the existing literature by revealing the following primary findings by showing the correlation between carbon dioxide emissions, economic development, and foreign direct investment in Central Asian nations. The paper’s primary empirical findings indicate that there is a unidirectional link between GDP and CO2 emissions, GDP and energy consumption, and energy consumption and CO2. In Central Asia, meanwhile, we found no indication of a significant link between FDI and GDP or between CO2 and FDI.