The relationship between foreign direct investment and renewable energy production: Evidence from Brazil, Russia, India, China, South Africa and Turkey

Abstract

This paper aims to investigate the relationship between foreign direct investment (FDI) and renewable energy production in Brazil, Russia, India, China, South Africa (BRICS) countries and Turkey. For this purpose, the annual data from 1996 to 2015 is examined using with Pedroni co-integration test and panel autoregressive distributed lag test. Test results indicate the existence of long run relationship between renewable energy production and FDIs in BRICS countries and Turkey. Policy makers should adopt appropriate incentive policies to attract FDIs into the renewable energy sector.