|
|
 |
| |
|
|
|
Statistical Methods Estimate Interactions Between Environmental, Social Governance, and Foreign Direct Investment |
|
|
|
PP: 255-262 |
|
|
doi:10.18576/jsap/150207
|
|
|
|
Author(s) |
|
|
|
Razaz Houssien Felimban,
Sakeena E. M. Hamed,
Arafa O. Mustafa,
Nhla A. Abdalraman,
Buraie B. M. Ali,
Entissar Magboul Algeilani,
|
|
|
|
Abstract |
|
|
| This study examines the relationship between environmental, social, and governance (ESG) performance and flows of foreign direct investment (FDI). Sustainability and climate change are becoming more prominent regulatory priorities, which is why this research is important. This article zeroes in on the correlation between ESG (environmental, social, and governance) performance and FDI (foreign direct investment). This study looks at EU states from 2017 to 2025 to see whether FDI draws higher ESG performance and if FDI inflows lead to changes in ESG principles. This research spans the years 2017 through 2025. In order to shed light on complex nonlinear relationships, we use a two-pronged approach: first, we use fixed-effects panel regressions to analyze the impact of environmental, social, and governance (ESG), carbon intensity, and business conditions on foreign direct investment (FDI), taking into consideration the impact of interest rates; second, we use a multilayer perceptron (MLP) model to shed light on these relationships. There are a number of metrics that are used in order to assess the efficiency of the model. Some of these measurements are MAE, RMSE, and R2. The figure that represents the R-squared value illustrates the value that has been established. The objective of this project is to give thorough information on the link between ESG (environmental, social, and governance) aspects and foreign direct investment (FDI). This will be accomplished via the use of both traditional econometrics and machine learning methodologies. In addition, our research provides policymakers with suggestions that may be implemented if they so choose. This gives them the ability to construct incentives that are founded on facts and that promote both economic gain and sustainable development. |
|
|
|
|
|
|
|
