Factors of international trade and environmental degradation in the UAE: Moderating role of foreign investor characteristics

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Abstract

The purpose of the study is to identify the moderating role of economic factors of foreign investor over the relationship between economic factors and environmental degradation in Dubai which is among the fastest-growing economies and is attracting foreign direct investments (FDI) at the best. In order to meet the objectives of the study two hypotheses were developed. The first hypothesis deals with the direct effect of economic dimensions of foreign direct investment (Alkathiri, 2022), whereas, the second hypothesis deals with the moderating impact of foreign investor characteristics over the relationship between economic dimensions of foreign direct investment and environmental degradation. Both hypotheses have been checked over the primary data collected from the executives of multinational companies operating in Dubai. The findings of the study revealed that economic dimensions of foreign direct investment have a significant impact on environmental degradation. Likewise, foreign investor characteristics hold a significant moderating role in the significant relationship between economic factors of foreign direct investment and environmental degradation (Khan & Agha, 2015). The study showed some limitations and opened the horizons for future research.

Keywords: Foreign Direct Investment, Government Facilitation, Foreign Investor Characteristics, Environmental Degradation

Authors’ individual contribution: Conceptualization — S.M.H.A.; Methodology — S.M.H.A.; Software — S.M.H.A.; Validation — R.I.; Formal Analysis — S.M.H.A.; Writing — Original Draft — S.M.H.A.; Writing — Review & Editing — R.I.; Supervision — R.I.; Project Administration — R.I.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: F02, F4, F5

Received: 05.06.2022
Accepted: 01.02.2023
Published online: 03.02.2023

How to cite this paper: Albahar, S. M. H., & Islam, R. (2023). Factors of international trade and environmental degradation in the UAE: Moderating role of foreign investor characteristics. Journal of Governance & Regulation, 12(1), 113–123. https://doi.org/10.22495/jgrv12i1art11