Linking foreign direct investment, economic growth, energy consumption and ecological footprint in Vietnam: Evidence from quantile on quantile approach

Abstract

Sustainable development should be seen as a top priority in designing economic policies in both developed and developing countries. To achieve this goal, besides focusing on economic growth, ensuring social justice, and respecting human rights, countries also need to pay attention to environmental protection. However, any country, including Vietnam, faces environmental and climate challenges when pursuing economic goals. This makes it difficult for policymakers to strike a balance and make appropriate trade-offs between economic activity and environmental protection. The study aims to explore the relationship between foreign direct investment, economic growth, energy consumption, and ecological footprint in Vietnam from 1986 to 2019. By applying a non-parametric analysis, empirical results from the quantile on quantile approach show that foreign direct investment, economic growth, and energy consumption have a positive impact on ecological footprint. However, slope coefficients are inconsistent at all quantiles. These findings provide important implications in attracting foreign direct investment and promoting economic growth to achieve the sustainable development goals for Vietnam.