Pesaran CADF & CIPS tests of unit roots.

The study aims to investigate how foreign direct investment (FDI) and green innovation (GI) impact environmental quality in South Asia. Moreover, this study examines the moderating role of GI between FDI and environmental sustainability. We use panel data from 1995 to 2018 for five South Asian nations namely, Pakistan, India, Bangladesh, Sri Lanka, and Nepal. For the empirical analysis, we used 1st generation cointegration like Pedroni and Kao, and 2nd generation cointegration tests like Westerlund. Moreover, for the long-run relationship, we employ fully modified least squares (FMOLS) and dynamic ordinary least squares (DOLS) estimation. The study’s empirical results suggest that GI significantly enhances ecological sustainability in South Asian economies; however, FDI degrades the environmental quality. Furthermore, the results suggest that GI significantly moderates the nexus of FDI and ecological sustainability in South Asia. It is recommended that South Asian countries increase green innovation with FDI so that environmental quality can be assured for the region’s sustainable development.

本研究旨在探究外商直接投资（Foreign Direct Investment, FDI）与绿色创新（Green Innovation, GI）对南亚地区环境质量的影响机制。此外，本研究还检验了绿色创新在FDI与环境可持续性之间的调节效应。
本研究选取1995年至2018年间巴基斯坦、印度、孟加拉国、斯里兰卡及尼泊尔五个南亚国家的面板数据开展实证分析。
实证过程中，本文采用了Pedroni检验、Kao检验等第一代协整检验方法，以及Westerlund检验等第二代协整检验方法；针对长期均衡关系，本文运用完全修正最小二乘法（Fully Modified Least Squares, FMOLS）与动态普通最小二乘法（Dynamic Ordinary Least Squares, DOLS）进行参数估计。
本研究的实证结果表明：绿色创新可显著提升南亚经济体的生态可持续性水平，而外商直接投资则会恶化区域环境质量；进一步分析显示，绿色创新可显著调节FDI与生态可持续性之间的关联关系。
据此，本研究建议南亚各国应结合外商直接投资推进绿色创新，以此保障区域环境质量，助力区域可持续发展。