Effect of Foreign Direct Investment on Energy consumption: Does Institutional Quality matter? Evidence from Cote d'Ivoire


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Authors

  • Lewis-Landry Gakpa Ecole Nationale Superieure de Statistique et d'Economie Appliquee Abidjan, Cote d'Ivoire
  • Hugues Kouassi Kouadio Ecole Nationale Superieure de Statistique et d'Economie Appliquee Abidjan, Cote d'Ivoire

DOI:

https://doi.org/10.32479/ijeep.11907

Keywords:

FDI, energy consumption, institutional quality, Cote d’Ivoire

Abstract

This paper examines the role played by institutional quality in the relationship between foreign direct investment and energy consumption in Côte d'Ivoire. Using data from the World Bank and International Country Risk Guid over the period 1984-2014 and the Dynamic Ordinary Least Squares (DOLS) and Fully Modified Ordinary Least Squares (FMOLS) methods, we account for the joint effects of institutional quality and foreign direct investment on energy consumption. The results reveal that a high level of democracy attenuates the negative effects of FDI flows on energy consumption. This result shows that improving and strengthening democratic institutions has a positive influence on energy efficiency incentive policies by changing the composition of FDI towards clean technology sectors, such as the service sector.

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Author Biographies

Lewis-Landry Gakpa, Ecole Nationale Superieure de Statistique et d'Economie Appliquee Abidjan, Cote d'Ivoire

Dr Lewis-Landry Gakpa is currently a Lecturer-Researcher  at the National School of Statistics and Applied Economics (ENSEA) of Abidjan, Côte d'Ivoire. He received his PhD in Economic Development from the University Félix Houphouet Boigny, Cote d'Ivoire in 2018.

Hugues Kouassi Kouadio, Ecole Nationale Superieure de Statistique et d'Economie Appliquee Abidjan, Cote d'Ivoire

Dr. Hugues Kouadio, is a Senior Economist and Statistician with a professional experience of over 18 years. He holds a PhD in economics from the University of Paris 1 Panthéon Sorbonne in France.

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Published

2022-01-19

How to Cite

Gakpa, L.-L., & Kouadio, H. K. (2022). Effect of Foreign Direct Investment on Energy consumption: Does Institutional Quality matter? Evidence from Cote d’Ivoire. International Journal of Energy Economics and Policy, 12(1), 453–459. https://doi.org/10.32479/ijeep.11907

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Articles