Governance Quality and Renewable Energy Investment in Emerging Markets: Evidence Against the FDI Mediation Hypothesis

Nada OUIA; Rachid EL BETTIOUI

doi:10.23882/ijdam.26272

Autores

Nada OUIA FSJES-Mohammedia, Hassan II University, Casablanca https://orcid.org/0009-0001-7767-2396
Rachid EL BETTIOUI Ibn Zohr University of Agadir, Morocco https://orcid.org/0000-0002-0251-9426

DOI:

https://doi.org/10.23882/ijdam.26272

Palavras-chave:

Investimento em energia renovável, Investimento direto estrangeiro, Análise de mediação, Efeitos de limiar

Resumo

This study examines whether institutional quality influences renewable energy investment indirectly through foreign direct investment (FDI). Using panel data for 12 major emerging markets over 2015–2022, we apply a three-step mediation framework with two-way fixed effects and conduct a threshold analysis across income levels. Governance quality has a positive and statistically significant effect on renewable energy investment, but this effect does not operate through FDI. Neither the governance-to-FDI nor the FDI-to-renewable energy channels are significant, and the indirect effect explains only a negligible share of the total impact. Threshold results show that governance effects materialize only above GDP per capita levels of approximately $6,000–7,000, suggesting that institutional quality and economic development are complementary rather than substitutable. These findings indicate that improving governance alone is insufficient to attract renewable energy investment in lower-income settings. The results challenge conventional assumptions in the green finance literature and provide new evidence on the conditional role of institutions in the energy transition.

Biografias Autor

Nada OUIA, FSJES-Mohammedia, Hassan II University, Casablanca

Doutoranda, bolseira do programa PASS

Mestre em Análise Económica e Mestre em Mercados Financeiros e Economia Aplicada. Faculdade de Ciências Jurídicas, Económicas e Sociais de Mohammedia, Universidade Hassan II de Casablanca, Marrocos. Laboratório de Pesquisa em Economia, Gestão, Finanças e Estratégias Organizacionais.

Rachid EL BETTIOUI, Ibn Zohr University of Agadir, Morocco

Professor at Ibn Zohr University, Agadir, Morocco. PhD of Management and Economics at Hassan II University of Mohammedia
Laboratory member of Research “Performance Management MAPES” ENCG of Agadir
Symposium DFIE/ENCGA Chair
Member of tenure committee of Minnesota Crookston University USA
President of ARED association of research.
Ex-Director of High Institute of Applied Technology of Vocational Department
Ex- Business Supervisor in Fondation Zakoura Education
Ex- Member of CPDH, Ministry of Interior, Morocco
Ex- Audit Studies Project Supervisor in the American Company Nielsen
Ex- Administrator Member with United Nations Organization
Author of many scientific articles and Editors of many books in social sciences.

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