Foreign Direct Investment And Air Pollution: Granger Causality Analysis

Kumar, Vinod

doi:10.9790/487x-15010020212-17

Cited by 4 publications

(3 citation statements)

References 10 publications

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“…Peng (2018) also confirmed the negative effect of FDI on climate change in a spatial econometric analysis of the influence of FDI on China Haze pollution considering 31 provinces while using data from 2006 to 2015. Using data for India between 1981 and 2011 in analysing the causality relationship between FDI and air pollution using the Granger causality test, Kumar and Chander (2016) show that FDI has a significant negative impact on the air quality in India. Evidence of FDI’s negative impact on climate change has not only been true for MENA and Asian countries, but also for African countries.…”

Section: Literature Reviewmentioning

confidence: 99%

Revisiting the pollution haven hypothesis within the context of the environmental Kuznets curve

Bekun

Gyamfi

Etokakpan

et al. 2023

IJESM

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Purpose This purpose of this study is to explore the impact of global trend of economic integration and interconnectedness which has drawn the attention of world economies and their implications on trade inflow. This trajectory has its impact, either positive/negative, on key macroeconomic indicators, to say the least on environmental sustainability, especially emerging economies. To this end, the need to explore the connection between foreign direct investment (FDI) inflow and energy consumption amidst the wave of economic globalisation is timely and pertinent for the case of Turkey. Design/methodology/approach This study seeks to explore the interaction between the outlined variables in a carbon-income framework for annual time series data from 1970 to 2016. A series of econometrics strategies was used consisting of unit root tests to examine the stationarity properties of the highlighted series. Subsequently, Pesaran’s Bounds testing technique is used to explore the long-run equilibrium relationship between the highlighted variables in conjunction with the Johansen cointegration test. For long-run regression coefficients, Pesaran’s autoregressive distributed lag and dynamic ordinary least squares methodology are used, and innovative accounting approaches are used to explore the responsiveness of each variable on another. Findings Empirical results validate the pollution haven hypothesis (PHH) in the long run for the case of Turkey. Thus suggesting that FDI inflow induced environmental degradation in Turkey. Additionally, this study observed that renewable energy, on the contrary, improves the quality of the environment. This study also affirms the presence of the environmental Kuznets curve phenomenon, indicating that Turkey, at its early stage of economic trajectory, emphasis is on economic growth rather than environmental quality. This suggests a need for more deliberate action(s) by the government administrators to pursue cleaner FDI inflow and energy technologies and strategies to foster a clean environment in Turkey and a cleaner ecosystem at large. Originality/value This study is unique in its choice of variables which is in line with the United Nations Sustainable Development Goals (SDGs) agenda to be achieved by 2030 and is very limited in the extant literature. From the economic perspective, the effect of the PHH is of interest especially to ascertain the extent the interplay among the variables has on the economy of Turkey. The empirical insights on PHH hypothesis have received less documentation in the extant literature especially for emerging economy like Turkey. Thus, this study seeks to revisit this theme for Turkey with aim to presents environmentally sustainable strategies without compromise for economic growth. Thus, this study seeks to revisit this theme.

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Section: Literature Reviewmentioning

confidence: 99%

Revisiting the pollution haven hypothesis within the context of the environmental Kuznets curve

Bekun

Gyamfi

Etokakpan

et al. 2023

IJESM

View full text Add to dashboard Cite

show abstract

“…Hitam and Borhan (2012) examined the relationship between FDI, GDP growth, and pollution in Malaysia and found sustained growth of FDI to be one of the important causes of environmental degradation. Kumar and Chander (2016) studied the relationship between FDI inflow and CO 2 emission in India from 1981 to 2011 using Granger causality test and found a significant negative impact of FDI on the air quality and a bidirectional relationship between the two variables.…”

Section: Review Of Literaturementioning

confidence: 99%

Development and Degradation: The Nexus between GDP, FDI, and Pollution in India

Sundari

Mitra²

2020

Emerging Economy Studies

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The nexus between development and environment has been a debatable topic for years, more so when foreign direct investment (FDI is used to accelerate the economy. Since environmental Kuznets curve may not be achievable by all economies and many studies have not been able to establish a consistent relationship between FDI and environment, this study determines the liaison between FDI, GDP, and pollution in India with time series data from 1990 to 2015. While per capita GDP plotted against per capita carbon dioxide (CO2) emission indicates an alarming positive relation, the co-integration between FDI, GDP, and CO2 tested using unit root test statistics (augmented Dickey–Fuller test) for stationarity and then by Johansen and Juselius’s multivariate co-integration technique show a long-run co-integration. Since the existence of a relationship between variables does not prove causality, the variables are phrased in a vector error correction (VEC) form and vector error correction mechanism (VECM) Granger causality/block exogeneity Wald test which reveals that FDI has a positive and significant impact on pollution and GDP attracts FDI. This transitive relation suggests that FDI in pollution-controlling technology would be a feasible solution to sustainable development.

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“…It is applied in various fields. Among them is the study of the links between air pollution and economic indicators [17], causal dynamics between CO2 emissions, health expenditures and economic growth [18], causal effects of air pollution on health [19,20], and other. In particular, although a small number of publications, have used Granger causality to study interdependencies between air pollutants' time series.…”

Section: Introductionmentioning

confidence: 99%

Temporal-causal modeling of air pollution in the city of Plovdiv, Bulgaria: a case study

Ivanov,

Gocheva-Ilieva,

Stoimenova-Minova

2023

J. Phys.: Conf. Ser.

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High levels of air pollution are dangerous to human health, which is a current problem for densely populated cities worldwide. Studying this problem can help detect pollutants’ time dependencies on basic meteorological measurements and other factors for future prediction and elaborate corresponding alarms when official upper pollution limits are exceeded. In this work, time-causal models based on previous daily time observations and meteorological measurements in the city of Plovdiv, Bulgaria, are applied. Vector-type temporal-causal models are constructed and analyzed for carbon dioxide (CO2), nitrogen dioxide (NO2), sulfur dioxide (SO2), and fine dust particles below size 10, 2.5, and 1 micron (PM10, PM2.5, and PM1), respectively. Pollution levels are predicted seven days ahead.

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Foreign Direct Investment And Air Pollution: Granger Causality Analysis

Abstract: This paper seeks to examine the relationship between foreign direct investments (FDI) inflow,and CO2 emissionin Indiafrom last three decade (1981 to 2011

Cited by 4 publications

References 10 publications

Revisiting the pollution haven hypothesis within the context of the environmental Kuznets curve

Revisiting the pollution haven hypothesis within the context of the environmental Kuznets curve

Development and Degradation: The Nexus between GDP, FDI, and Pollution in India

Temporal-causal modeling of air pollution in the city of Plovdiv, Bulgaria: a case study

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