Results of slope homogeneity test.

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。此外，本研究还考察了绿色创新在FDI与环境可持续性之间的调节效应。本研究采用1995年至2018年的面板数据，研究样本涵盖巴基斯坦、印度、孟加拉国、斯里兰卡与尼泊尔五个南亚国家。在实证分析中，本研究采用了两类协整检验方法：第一代协整检验包括Pedroni检验与Kao检验，第二代协整检验则包含Westerlund检验。针对长期均衡关系，本研究采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。本研究的实证结果显示：绿色创新可显著提升南亚经济体的生态可持续性，而FDI则会恶化区域环境质量。此外，研究结果还表明，绿色创新对南亚地区FDI与生态可持续性之间的关联存在显著的调节效应。据此，本研究建议南亚各国应结合FDI推进绿色创新实践，以保障区域环境质量，助力地区可持续发展。