Exploring the optimal threshold of FDI inflows for carbon-neutral growth in Africa.

This study investigates the relationship between foreign direct investment (FDI) and CO emissions in Africa, primarily emphasizing carbon-neutral growth. Employing advanced econometric methods like the Generalized Method of Moments (GMM), fixed effect, and Two-Stage Least Squares (2SLS), we identify critical threshold values for key variables, including economic growth, trade openness, human capital, financial development, inflation, and population growth. Our findings indicate that GDP significantly influences the FDI-CO emissions relationship as economies expand, shifting from negative to positive, potentially leading to increased carbon emissions.