RELEVANCE OF ENVIRONMENTAL FACTOR ON SUSTAINABLE FDI INFLOWS: EVIDENCE FROM BIMSTEC COUNTRIES

Abstract

This study analyzes the impact of environmental, institutional, social, and economic factors on sustainable foreign direct investment (FDI) inflows in the BIMSTEC countries (Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand) from 2000 to 2019. The data used in this research was obtained from the World Development Indicator, World Bank, World Governance Indicator of the World Bank, and UNCTAD. The study covers the social, economic, environmental, and institutional factors that affect sustainable FDI inflows. The panel data analysis was carried out using a random effect model, and the dataset was checked for autocorrelation, multicollinearity, and heteroscedasticity. The results of the study demonstrate that economic, social, and environmental factors play a significant role in attracting sustainable FDI to a country.