The study examines how foreign investments and energy use affect the economic growth of BRICS countries (Brazil, Russia, India, China, and South Africa) and their contributions to the UN Sustainable Development Goals (SDGs).
First, the study reveals that foreign investments (FDI) do not always lead to economic growth. There are complex relationships where sometimes more foreign investment doesn’t result in growth, and vice versa. Issues like weak financial systems and poor infrastructure might be the reasons behind this. Achieving SDG 8 (Decent Work and Economic Growth) requires addressing these institutional deficiencies to make foreign investments more effective.
Second, energy use is crucial for economic development. The study finds that non-renewable energy sources (like coal and oil) help economic growth and attract foreign investments, but they also cause environmental problems due to high carbon emissions. This impacts SDG 13 (Climate Action). On the other hand, renewable energy (like wind and solar) seems to slow down economic growth initially. However, foreign investments can help bring more renewable energy technologies, which support SDG 7 (Affordable and Clean Energy) and SDG 9 (Industry, Innovation, and Infrastructure).
Lastly, the study emphasizes the environmental challenges linked to energy use in BRICS countries. It suggests that these countries need to switch to cleaner energy sources to combat climate change, aligning with SDG 13 (Climate Action). The positive impact of foreign investments on renewable energy adoption shows a pathway for these countries to reduce their carbon footprint, supporting both SDG 13 and SDG 7.
