This research applies a Vector error correction model to investigate the long-run and short-run effects of gross domestic product (GDP), energy consumption, foreign direct investment (FDI), and trade openness on CO2 emissions. | Short-and long-term effects of GDP energy consumption FDI and trade openness on CO2 emissions Accounting 6 2020 365 372 Contents lists available at GrowingScience Accounting homepage ac Short-and long-term effects of GDP energy consumption FDI and trade openness on CO2 emissions Thi Van Trang Doa and Hong Linh Dinhb aBanking Academy Hanoi Vietnam bThai Nguyen University of Economics and Business Administration Thai Nguyen Vietnam CHRONICLE ABSTRACT Article history This research applies a Vector error correction model to investigate the long-run and short-run effects Received November 22 2019 of gross domestic product GDP energy consumption foreign direct investment FDI and trade Received in revised format openness on CO2 emissions. The findings indicate that in the long run GDP growth per capita has a November 28 2019 negative influence on CO2 emission. Energy consumption and trade openness negatively affect CO2 Accepted January 9 2020 Available online emission. The foreign direct investment as the percentage of GDP in a long time has a positive January 9 2020 relationship with CO2 emission. Furthermore the short-run GDP per capita affects CO2 emission with Keywords two-year lags and energy consumption influences CO2 emission with a one-year lag. These CO2 emissions observations have many implications for policy-makers in issuing the FDI policy in Vietnam in recent Energy consumption times and considering the impact of economic development on protecting the sustainable growth in GDP the long-run. Trade openness 2020 by the authors licensee Growing Science Canada 1. Introduction In recent decades the foreign direct investment FDI inflow has represented the trend to shift from developed countries to developing countries based on the statistics data from the World Bank Cole et al. 1997 Cole 2004 Liu 2005 Mohiuddin et al. 2016 Roca amp Alcántara 2001 . The reason causes this issue in the developing countries are to get the advantages of
