The Influence of Foreign Direct Investment and Green Finance on Sustainable Development Across Nations

Abstract

This study assessed the impact of foreign direct investment and green finance on sustainable development in 54 countries worldwide in the period 2008–2022. Through panel data regressions using a Bayesian approach, this study has provided evidence of the undesirable impact of foreign direct investment flows and the need to improve quality, raise criteria for selecting FDI projects to improve the quality of economic growth, protect the environment, and ensure people's lives. The research results also confirm the role of green finance in the sustainable development of a country. In addition to the factors of foreign direct investment flows and green finance, the research team also clarified the role of other factors on sustainable development, including taxes, institutional quality, economic openness, population growth, and inflation.