THE RELATIONSHIP BETWEEN ENERGY CONSUMPTION, FOREIGN DIRECT INVESTMENT, GROWTH, AND CO2 EMISSIONS: A TIME SERIES ANALYSIS WITH STRUCTURAL BREAKS FOR MOROCCO

This Study investigates the nexus between energy consumption, foreign direct investment (FDI) inflows, growth and CO2 emissions in Morocco during the period 1971-2014. Given the period analyzed, we take into account the structural breaks that marked this long period. For this purpose, several tests of unit roots and cointegration with structural breaks and bootstrap causality tests are conducted. Our results show that there is a long-term relationship between the variables in the model. These results reveal that the pollution haven hypothesis meaning that FDI has positive effects on environment is valid for Morocco. Finally, we conclude with some recommendations for policy makers.

 

Energy Consumption, Economic Growth, Foreign Direct Investment, Carbon Dioxide Emissions, Maki Cointegration Method