The Effects of Technological Innovation, Industry Share, and Foreign Direct Investment on Bangladesh’s Industrial Processes and Carbon Emissions
DOI:
https://doi.org/10.48165/sajssh.2026.7301Keywords:
CO₂ emissions, Technological innovation, Industry share, Foreign Direct Investment (FDI), ARDL, BangladeshAbstract
This research investigates the long- and short-run impacts of technological innovation, industry share, and Foreign Direct Investment on CO2 emissions from industrial processes in Bangladesh. Time series data from 1986 to 2021 are analyzed using the Autoregressive Distributed Lag (ARDL) bounds testing approach and the ECM method to examine dynamics in the long and short run, respectively. However, both industry shares and FDI one-year lagged values in the short run indicate the reduction of CO2 emissions from industrial processes. The findings revealed a significant positive long-run association between CO2 emissions from industrial processes, innovation, industry share, and Foreign Direct Investment. Thus, in the long run, the pressing concerns about increased emissions from industrial processes call for robust policies, such as strengthening low-carbon innovation systems, steering industrial activities and FDI towards cleaner, greener technologies, and enhancing long-term sustainability while maintaining economic competitiveness.
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