2021
DOI: 10.21203/rs.3.rs-441069/v1
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Foreign Direct Investment and Pollution: Evidence from Middle Income and Oecd Countries

Abstract: In this study, we reexamine the impact of foreign direct investment inflows on carbon emissions in middle-income and OECD countries over the period 1992–2017. For that purpose, we employ a two-step system GMM dynamic panel data estimator controlling for endogeneity, omitted variable, and simultaneity biases in our panels. Employing a dynamic panel estimation methodology, we introduced some new findings and believe that these have important policy implications. The empirical results from the analyses show that … Show more

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Cited by 3 publications
(4 citation statements)
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“…In developing countries, foreign direct investment increased carbon emission in low and LMIC host countries. The FDI inflow positively increased carbon dioxide emissions in MIC, thus PHH being true for these countries (Benli and Acar, 2021). Muhammad and Khan (2021) also conducted panel data analysis for 170 countries around the world for the period 1990 to 2018 for investigating the effect of FDI inflow and other control variable on carbon dioxide emissions.…”
Section: Literature Reviewmentioning
confidence: 99%
See 1 more Smart Citation
“…In developing countries, foreign direct investment increased carbon emission in low and LMIC host countries. The FDI inflow positively increased carbon dioxide emissions in MIC, thus PHH being true for these countries (Benli and Acar, 2021). Muhammad and Khan (2021) also conducted panel data analysis for 170 countries around the world for the period 1990 to 2018 for investigating the effect of FDI inflow and other control variable on carbon dioxide emissions.…”
Section: Literature Reviewmentioning
confidence: 99%
“…In developing countries, foreign direct investment increased carbon emission in low and LMIC host countries. The FDI inflow positively increased carbon dioxide emissions in MIC, thus PHH being true for these countries (Benli and Acar, 2021).…”
Section: Literature Reviewmentioning
confidence: 99%
“…Pollution Halo Hypothesis, on the other hand, is the hypothesis that greener technologies can be exported from developed countries to developing countries and production can be made without causing environmental pollution. Pollution Haven Hypothesis is also referred to as "race to the bottom", and Pollution Halo Hypothesis is also referred to as "bottom rise" (Zhang & Zhou, 2016;Benli & Acar, 2022;Zeren, 2015). In the first hypothesis, it is claimed that FDI has negative effects on the environment, and in the second, positive effects.…”
Section: Introductionmentioning
confidence: 99%
“…As summarised by Rizos et al (2021, p.1-30), there is a wide literature on the relationship between the well-functioning of the judicial system and economic growth. In particular, the efficiency and quality of judicial systems resulted in influencing the size of the firms (Kumar et al, 2001;Beck et al, 2006;Giacomelli & Menon, 2013;Lorizio & Gurrieri, 2014), the foreign direct investments (Benassy-Quere et al, 2007;Bellani, 2014), and the interest rates (Levine, 1998;Djankov et al;. The Doing Business index, developed by the World Bank to measure the ease of doing business in a country, includes among the parameters the capacity to enforce contracts, which is related to the efficiency and effectiveness of the courts in resolving disputes.…”
Section: Judicial Efficiency and The New Court Managementmentioning
confidence: 99%