Jurnal Magister Ekonomi Syariah
Vol. 3 No. 2 Desember (2024): J-MES: Jurnal Magister Ekonomi Syariah

The Impact of FDI, Unemployment, Carbon Emissions, and Inflation on Economic Growth in OIC Countries: Toward Long-Term Economic Resilience

Elina, Riskiana (Unknown)



Article Info

Publish Date
30 Apr 2025

Abstract

This study investigates the impact of Foreign Direct Investment (FDI), unemployment, carbon emissions, and inflation on economic growth in 18 selected OIC (Organization of Islamic Cooperation) member countries from 2014 to 2023. Employing static panel regression (Fixed Effect Model), dynamic panel regression (GMM), and Moderated Regression Analysis (MRA), the study examines both direct effects and the moderating role of inflation. The results reveal that FDI has a positive effect in static models but a negative effect in dynamic models, suggesting potential crowding-out effects. Unemployment consistently has a negative impact on economic growth, while carbon emissions show a positive association, indicating trade-offs between environmental sustainability and growth. Inflation positively influences growth and acts as a quasi-moderator. By integrating Neoclassical Growth Theory and the Resilience Economy framework, this study offers a comprehensive perspective for policymakers in OIC countries to formulate balanced strategies for sustainable development.

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Journal Info

Abbrev

jmes

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Magister Ekonomi Syariah is published by Program Studi Magister Ekonomi Syariah, Fakultas Ekonomi dan Bisnis Islam, Universitas Islam Negeri Sunan Kalijaga, Yogyakarta, Indonesia. This journal is designed to provide a forum for researchers or academicians and also practitioners who are ...