Foreign Finance and Renewable Energy Transition in D8 Countries: The Moderating Role of Globalization
Bibliographic record
Abstract
This study looks at the role of foreign finance in promoting the shift to renewable energy in the Developing-8 (D8) countries—Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, and Turkey—between 2000 and 2023, with particular focus given to the moderating role of globalization. Utilizing an unbalanced panel dataset covering eight D8 countries over 2000–2023 and applying advanced econometric techniques, including System-GMM, Common Correlated Effects, nd Driscoll–Kraay estimators, the analysis accounts for slope heterogeneity, cross-sectional dependence, and possible endogeneity. The results indicate that foreign finance, and particularly foreign direct investment (FDI), is highly significant in enhancing the supply and demand of renewable energy. Globalization also has an amplification effect as it spurs technology transfer, policy convergence, and market access. The combined impact of foreign finance and globalization is significant and positive in all specifications, indicating that the optimal benefits of foreign capital inflows are realized in highly integrated economies. Alternative globalization measures and tests of renewable energy robustness confirm the stability of the findings. It argues that institutionally reinforcing the foundations, strengthening global integration, and channeling foreign finance into green sectors are central policies for fostering renewable energy transitions in developing economies. This paper provides three contributions to the existing literature. First, it is the pioneering paper that examines systematically the moderating function of globalization on the foreign finance–renewable energy transition nexus in the D8 economies. Second, it applies the latest econometric techniques—System-GMM, CCE, and Driscoll–Kraay—that control for slope heterogeneity, cross-sectional dependence, and endogeneity. Third, it offers policy recommendations for emerging economies on how best to mobilize foreign finance in a globalization context. Unlike prior works that examine these dimensions separately, this study highlights their joint influence, thereby contributing a dual perspective that has been largely absent from the literature.
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How this classification was reachedexpand
Full frame machine prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.
Distilled classifier scores by category (both heads)
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.001 | 0.002 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.000 | 0.000 |
| Bibliometrics | 0.001 | 0.001 |
| Science and technology studies | 0.000 | 0.001 |
| Scholarly communication | 0.001 | 0.001 |
| Open science | 0.000 | 0.001 |
| Research integrity | 0.000 | 0.001 |
| Insufficient payload (model declined to judge) | 0.002 | 0.000 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from itClassification
machine, unvalidatedMachine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.
How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".