Do Foreign Direct Investment, Urban Population, Trade Openness, CO2 and GDP Influence the Renewable Energy Consumption? Case of Bangladesh Using the ARDL Approach

Together with management skills, the flow of foreign direct investment (FDI) from multinational corporations into their host countries often occurs concurrently with the transfer of information and technology. With the aid of time series data extending from 1972 to 2021, the primary goal of this article is to demonstrate the relationship between FDI, GDP, trade openness, population growth, and CO2 with renewable energy usage in Bangladesh. The ARDL test validates a long-term relationship between the variables, while the heteroscedasticity test demonstrates a homoscedastic relationship. We discovered the data has normalcy in skewness and kurtosis using the Jarque-Bera normality test. The CUSUMSQ test was used to determine the stability of our variables, and the results show that they are stable. Investment in the renewable energy sector should be increased by considering policies to attract more FDI. Received: 3 August 2024 / Accepted: 11 November 2024 / Published: 20 November 2024