Green field investment and environmental performance: A case of selected nine developing countries of Asia

Adeel-Farooq, Rana Muhammad; Bakar, Nor Aznin Abu; Raji, Jimoh Olajide

doi:10.1002/ep.12740

Cited by 50 publications

(39 citation statements)

References 39 publications

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“…Besides, Energy does not have a significant impact on EP ( β = 0.1940, p = n.s.). Our results confirm the observations made by Adeel‐Farooq et al (2018), who also show the insignificant impact of energy consumption on EP in nine selected Asian developing countries.…”

Section: Resultssupporting

confidence: 92%

“…Tan, 2015) and nine selected Asian developing countries (Adeel-Farooq et al, 2018). However, our results prove that the competition of different Chinese regions in attracting FDI does not lead to the "race-to-the-bottom" competition.…”

Section: Discussionmentioning

confidence: 57%

“…The inflows of FDI can help accelerate economic growth via transferring knowledge, management skills, and advanced technologies and creating job opportunities (Adeel‐Farooq et al, 2018; Tang & Tan, 2015). Local governments may thus take a series of measures to attract FDI and promote economic growth.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…Foreign direct investment (FDI), as an important measure to accelerate the development of economy, has also been studied widely, especially the impact of FDI on EP (Adeel‐Farooq, Abu Bakar, & Raji, 2018; Liu, Wang, Zhang, Zhan, & Li, 2018). However, little is known whether FDI can moderate the impact of EI on EP or not.…”

Section: Introductionmentioning

confidence: 99%

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Can environmental investments benefit environmental performance? The moderating roles of institutional environment and foreign direct investment

Ramanathan

2020

Bus Strat Env

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The contribution of environmental investments (EIs) to environmental performance (EP) is a lively topic for environmental researchers across the world. In spite of huge amount of research, there is still lack of clarity on the moderating factors that affect the role played by EI. In this study, we distinguish EI into pollution control investments (PCIs) and pollution prevention investments (PPIs). We further investigate whether institutional environment and foreign direct investment (FDI) can play their moderating effects both on the relationship between EI and EP and on the relationships between different types of investments and EP or not. The results indicate that EI has a positive effect on EP. More specifically, PPI plays a stronger positive role in EP, but PCI does not have a significant effect on EP. In addition, both institutional environment and FDI can strengthen the positive impact of EI on EP. The increase of EI in regions with better institutional environment or high FDI can lead to greater improvement in EP. These moderating effects of institutional environment and FDI are also confirmed on the link between PPI and EP. In summary, our results reinforce the existing views that EI, and specifically PPI, can improve EP but further contribute to the understanding of the positive moderating roles played by the institutional environment and FDI on the link between EI and EP. K E Y W O R D S environmental investments, environmental performance, foreign direct investment, institutional environment, pollution control investments, pollution prevention investments 1 | INTRODUCTION How to address the environmental problems caused by the economic development is a common problem faced by the whole world. Over the past 40 years, China has made remarkable achievements in economic development. However, the environmental problems caused by the rapid economic development are still serious (Ai, Hu,

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Section: Resultssupporting

confidence: 92%

Section: Discussionmentioning

confidence: 57%

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Can environmental investments benefit environmental performance? The moderating roles of institutional environment and foreign direct investment

Ramanathan

2020

Bus Strat Env

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“…Based on the environmental democracy index (EDI), Yale Center for Environmental Law & Policy, in association with the Center for International Earth Science Information Network (CIESIN), Columbia University, released the environmental performance indices (EPIs) of all countries over the years. Chakraborty and Mukherjee [30] and Adeel-Farooq et al [31] empirically measured ERS intensity with the EPIs.…”

Section: Literature Reviewmentioning

confidence: 99%

Panel Data Analysis on the Influence of Environmental Regulations on the Inflow of Foreign Direct Investment in China

Hu¹,

Dong²,

Zhang³

et al. 2020

IJSDP

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From the micro level, this paper thoroughly investigates the influence of environmental regulations (ERS) on the inflow of foreign direct investment (FDI) in China. Firstly, the entropy method was adopted to comprehensively measure the ERS intensities of 283 Chinese cities at prefecture level and above in 2003-2016. Then, the Cournot model was utilized to analyze how ERS affects FDI. After that, fixed-effects model was employed to empirically examine the impacts of ERS intensities in eastern, central, and western regions on FDI inflow. The results show that: The regression results on nationwide, central, and western samples indicate that the influence of ERS variable was significantly negative. This means ERS is indeed an important consideration of foreign investors in location selection. Besides, stricter ERS hinders the inflow of FDI, which agrees with the pollution haven hypothesis. On eastern samples, stricter ERS promotes FDI inflow, that is, the situation in eastern region meets Porter hypothesis. Finally, several suggestions were presented for policymakers based on the empirical results.

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Driving environmental sustainability in emerging economies: The nexus of green finance, foreign direct investment, financial development, and green technology innovation

Kharb,

Saini,

Kumar

2024

Bus Strat Dev

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The relevance of environmental sustainability has grown significantly among academics, professionals, and the general public. A variety of factors influence an economy's ability to support its environmental sustainability. Foreign direct investment (FDI), financial development (FD), green technological innovation (GTI), and green finance (GF) are pillars that hold the key to accomplishing sustainability goals. Despite extensive studies on the factors influencing green finance, there remains a gap in grasping the impact of green finance and various investment factors on environmental sustainability. The study's objective is to analyze the relationship between ecological sustainability, green financing, FDI, innovative green technologies, and FD in developing countries. The study employed a fixed effect and random effect model with robustness analysis to gain an empirical understanding of the relationship. The findings highlighted that green finance plays a crucial role in green technologies and encourages economies to embrace sustainability. It also supports the pollution haven hypothesis (PHH) and the understanding that an increase in FDI has a positive relationship with carbon emission. The study makes a significant novel contribution by analyzing the combined influence of financial and green technological development on environmental sustainability. The numerous theoretical and practical implications for addressing the constraints posed by the PHH include tightening domestic legislation, developing international cooperation, and pushing the adoption of cleaner technology throughout industries. It helps governments enact effective environmental regulations to encourage green investment and technological innovation to have a beneficial knock‐on effect on cutting ecological sustainability.

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Green field investment and environmental performance: A case of selected nine developing countries of Asia

Cited by 50 publications

References 39 publications

Can environmental investments benefit environmental performance? The moderating roles of institutional environment and foreign direct investment

Can environmental investments benefit environmental performance? The moderating roles of institutional environment and foreign direct investment

Panel Data Analysis on the Influence of Environmental Regulations on the Inflow of Foreign Direct Investment in China

Driving environmental sustainability in emerging economies: The nexus of green finance, foreign direct investment, financial development, and green technology innovation

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