The Importance of Renewable Energy Consumption and Human Capital in Attracting Foreign Direct Investment in Pakistan

Abstract

This research looks at the connections between FDI, renewable and nonrenewable energy, human capital, and the environment in Pakistan. Using data collected from 1998 to 2020, this study uses the autoregressive distributed lag (ARDL) method to quantify the interdependencies between various conceptual frameworks. All variables tested had a significant impact on FDI in the long run. The environment coefficient is significantly negative. In addition, there is a positive indication of significance for the coefficients of renewable energy, non-renewable energy, and human capital acquired through formal education.  Based on the findings of this research, it is recommended that national governments take steps to attract more FDI.