This study explores the dynamic relationship between foreign direct investment (FDI), energy consumption, trade openness, and sustainable economic growth within BRICS + economies over the period 1990–2023. Anchored in an augmented Cobb–Douglas production framework and underpinned by endogenous growth theory, the research integrates conceptual and empirical dimensions to evaluate the combined influence of global capital flows, energy accessibility, and trade liberalization on long-term development patterns. Employing a rigorous econometric methodology—including Pooled Mean Group Autoregressive Distributed Lag (PMG-ARDL) estimations, panel cointegration analyses, and Dumitrescu–Hurlin Granger causality tests—the study examines both short-run dynamics and long-run equilibrium relationships among the key variables across ten BRICS + nations, encompassing the original BRICS members and recent entrants (UAE, Egypt, Ethiopia, Iran, and Indonesia).The empirical findings reveal a significant and positive long-run association among FDI, energy consumption, trade openness, and economic growth, providing empirical support for the investment-led, energy-led, and trade-led growth hypotheses. Furthermore, the presence of bidirectional causality across all relationships highlights the existence of reinforcing feedback mechanisms. By extending the scope to include the broader BRICS + coalition—characterized by resource abundance and transitional economic structures—this study fills a notable gap in the literature and emphasizes the bloc’s strategic importance in shaping future global economic paradigms. The results advocate for cohesive and forward-thinking policy strategies that harmonize FDI mobilization, sustainable energy development, and trade policy reforms to promote resilient, inclusive, and environmentally sustainable growth trajectories in emerging economies.

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Reassessing the FDI–Energy–Trade Triangle in BRICS + Economies A Dynamic Panel Analysis

  • Geoffrey G. Gachino

摘要

This study explores the dynamic relationship between foreign direct investment (FDI), energy consumption, trade openness, and sustainable economic growth within BRICS + economies over the period 1990–2023. Anchored in an augmented Cobb–Douglas production framework and underpinned by endogenous growth theory, the research integrates conceptual and empirical dimensions to evaluate the combined influence of global capital flows, energy accessibility, and trade liberalization on long-term development patterns. Employing a rigorous econometric methodology—including Pooled Mean Group Autoregressive Distributed Lag (PMG-ARDL) estimations, panel cointegration analyses, and Dumitrescu–Hurlin Granger causality tests—the study examines both short-run dynamics and long-run equilibrium relationships among the key variables across ten BRICS + nations, encompassing the original BRICS members and recent entrants (UAE, Egypt, Ethiopia, Iran, and Indonesia).The empirical findings reveal a significant and positive long-run association among FDI, energy consumption, trade openness, and economic growth, providing empirical support for the investment-led, energy-led, and trade-led growth hypotheses. Furthermore, the presence of bidirectional causality across all relationships highlights the existence of reinforcing feedback mechanisms. By extending the scope to include the broader BRICS + coalition—characterized by resource abundance and transitional economic structures—this study fills a notable gap in the literature and emphasizes the bloc’s strategic importance in shaping future global economic paradigms. The results advocate for cohesive and forward-thinking policy strategies that harmonize FDI mobilization, sustainable energy development, and trade policy reforms to promote resilient, inclusive, and environmentally sustainable growth trajectories in emerging economies.