DefinePK

Abstract

The objective of this study is to examine the relationships among foreign direct investment (FDI), technological innovation (TI), tourism, financial development (FD), economic stability, and environmental pollution  (EP) in BRICS economies. The balanced panel data from 2001 to 2023 was used; we employed various techniques, including the AMG, FMOLS, Dynamic OLS, and Partial Least Squares, to test the impact of key factors on economic and environmental pollution. The study results reveal that FDI, TI, and FD significantly reduce environmental pollution, whereas tourism contributes to increased EP. Evidence indicates bidirectional causality between FDI and EP, while causality runs unidirectionally from EP to TI and tourism. To promote sustainable development, BRICS economies should implement stricter FDI regulations to facilitate eco-friendly technology transfer, prioritize eco-tourism to balance economic and environmental objectives, and encourage green financing to support low-carbon technologies. Additionally, strategies such as carbon pricing and regional cooperation can further align economic stability with environmental goals, advancing the achievement of the SDGs. Notably, this is the first study to link tourism with FDI, TI, and FD in the context of economic stability and EP in BRICS economies, offering valuable evidence and novel policy insights for sustainable development in emerging markets.