Environment, growth, and FDI revisited

Neequaye, Nii Amon; Oladi, Reza

doi:10.1016/j.iref.2015.06.002

Cited by 126 publications

(65 citation statements)

References 30 publications

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“…FDI had a long history of being used as an instrument in analyzing spillover effects across countries [41][42][43], in this proposed research, we will keep adopting this variable, however, from an initiative perspective: The spillover effect of FDI could reflect the environment condition transformation according to production, consumption and trade. As for production sector, through horizontal spillover effect, sector-specific technical knowledge that would benefit pollution procession, this process, is among the classical cases of FDI influence environment [44]. An introduction of PVAR model's empirical application is illustrated in Table 4.…”

Section: Literatures On Pvarmentioning

confidence: 99%

Ecological Footprint, Foreign Direct Investment, and Gross Domestic Production: Evidence of Belt & Road Initiative Countries

Liu

Kim

2018

Sustainability

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This research is employed to examine the environmental issues embedded in Belt & Road Initiative (BRI), to be more specific: testify which of these hypotheses: Pollution Havens Hypothesis, Pollution Halo Hypothesis, Environmental Kuznets Curve is in accordance with the current development condition of BRI counties; whether there exists a bidirectional relationship among Ecological Footprint, Gross Domestic Production, Foreign Direct Investment (FDI) in Belt & Road Initiative countries. In this paper, Panel Vector Autoregression is utilized to analyze a dataset of 44-member countries in this initiative, ranges from 1990 to 2016, to empirically testify the environmental evaluation of this project. Results are analyzed on both long-run and short-run cases through Orthogonalized Impulse-Response Functions (IRF). This research displays a great heterogeneity among different target variables, FDI as a main variable of interest does not expose a bidirectional relationship with Ecological Footprint, only Ecological Footprint demonstrates robust influence on FDI. In addition, Pollution Havens Hypothesis is certified to be true for FDI and GDP among Belt & Road Initiative member countries.

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Section: Literatures On Pvarmentioning

confidence: 99%

Ecological Footprint, Foreign Direct Investment, and Gross Domestic Production: Evidence of Belt & Road Initiative Countries

Liu

Kim

2018

Sustainability

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“…When examining the PHH, the recent studies attempt to account for energy consumption as another important variable (in addition to income) in a model. Examples of this category include Kim and Baek (2011), Pao and Tsai (2011), Kivyiro and Arminen (2014), Lee and Brahmasrene (2014), and Neequaye and Oladi (2015). Notably, these studies provide mixed evidence on the PHH.…”

Section: Introductionmentioning

confidence: 99%

“…It is thus hoped that this dynamic approach will shed new light on the debate over FDI and the environment in developing countries. It should be pointed out that Pao and Tsai (2011) and Neequaye and Oladi (2015) are perhaps the only panel studies addressing the FDI-environment nexus; however, their analyses only target at BRIC countries and a few Latin American countries, respectively. 1 The rest of the article is presented as follows.…”

Section: Introductionmentioning

confidence: 99%

Does Foreign Direct Investment Harm the Environment in Developing Countries? Dynamic Panel Analysis of Latin American Countries

Baek

2017

Economies

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Abstract:This article sets out to study the FDI-environment nexus within a dynamic panel data framework. To that end, the pooled mean group (PMG) method of Pesaran et al. (1999) is used to assess the impact of FDI on CO 2 emissions, controlling for income and energy consumption, using a panel of 17 Latin American countries. Our results using the full sample show that FDI increases CO 2 emissions, confirming the pollution haven hypothesis. But when splitting the data into different income groups, FDI inflows only in high-income countries increase CO 2 emissions. In addition, CO 2 emissions with growth tend to increase monotonically within the full sample and middle-income countries. Finally, energy consumption is found to increase CO 2 emissions in all cases: the full sample, high-, middle-and low-income countries.

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“…The pollution haven hypothesis posits that foreign direct investment (FDI) has a positive effect on pollution. This positive relationship between FDI inflows and pollution is that pollution‐intensive industries are more likely to move from developed to less developed countries due to the less stringent or weak environmental regulation in the less developed countries (Al‐mulali and Tang, ; Neequaye and Oladi, ; Sapkota and Bastola, ; Shahbaz et al ., ). Essentially, the environment is a normal good and this is why developing countries have more lax environmental regulation stringencies or fragile environmental monitoring systems and institutions than developed countries (Neequaye and Oladi, ).…”

Section: Introductionmentioning

confidence: 99%

“…This positive relationship between FDI inflows and pollution is that pollution‐intensive industries are more likely to move from developed to less developed countries due to the less stringent or weak environmental regulation in the less developed countries (Al‐mulali and Tang, ; Neequaye and Oladi, ; Sapkota and Bastola, ; Shahbaz et al ., ). Essentially, the environment is a normal good and this is why developing countries have more lax environmental regulation stringencies or fragile environmental monitoring systems and institutions than developed countries (Neequaye and Oladi, ). In the empirical literature, FDI inflows are also found to have a negative effect on pollution through transferring more environmentally friendly technologies from developed to less developed countries (Al‐mulali and Tang, ); indicating the non‐validity of the pollution haven hypothesis and which is referred to as the pollution halo hypothesis (Shahbaz et al ., ).…”

Section: Introductionmentioning

confidence: 99%

Does foreign direct investment impede forest area in Sub‐Saharan Africa?

Lokonon¹,

Mounirou²

2019

Natural Resources Forum

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Foreign direct investment is an engine of economic growth. However, it may affect environmental quality (improve or deteriorate it), depending on the context. Under a multivariate framework, this paper aims to investigate the relationship between foreign direct investment and deforestation for Sub‐Sahara African countries with economic growth, trade openness and urbanization as additional determinants of deforestation. The analyses reveal that all variables are non‐stationary and cointegrated based on recent panel data techniques. On applying dynamic ordinary least squares, the long‐run results suggest the validity of the pollution haven hypothesis for some countries, and that of the pollution halo hypothesis for other countries. The findings are also mixed across Sub‐Sahara African countries for trade openness and urbanization. The results from this study suggest that Sub‐Sahara African countries should continue attracting foreign direct investment, while a certain number of them should put more emphasis on controlling deforestation associated with foreign direct investment inflows to limit greenhouse gas concentrations in the atmosphere.

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Environment, growth, and FDI revisited

Cited by 126 publications

References 30 publications

Ecological Footprint, Foreign Direct Investment, and Gross Domestic Production: Evidence of Belt & Road Initiative Countries

Ecological Footprint, Foreign Direct Investment, and Gross Domestic Production: Evidence of Belt & Road Initiative Countries

Does Foreign Direct Investment Harm the Environment in Developing Countries? Dynamic Panel Analysis of Latin American Countries

Does foreign direct investment impede forest area in Sub‐Saharan Africa?

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