How does Foreign Direct Investment Affect Pollution? Toward a Better Understanding of the Direct and Conditional Effects

Zugravu-Soilita, Natalia

doi:10.1007/s10640-015-9950-9

Cited by 159 publications

(58 citation statements)

References 55 publications

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“…Such results are, inter alia , in line with previous findings of Jorgenson (), who determined a positive impact of foreign direct investment on greenhouse gas emissions in primary sector. Additionally, the results support the more general findings of Grimes and Kentor (), Kim and Adilov (), and Zugravu‐Soilita (). However, the results differ from the findings of Pazienza (), who reported negative impact of foreign direct investment on greenhouse gas emissions in agriculture.…”

Section: Resultssupporting

confidence: 88%

Impact of foreign direct investment on greenhouse gas emissions in agriculture of developing countries

Kastratović

2019

Aus J Agri & Res Econ

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This research analyses the impact of foreign direct investment on greenhouse gas emissions in the agriculture sector of developing countries. Panel data from 63 developing countries for the period 2005 to 2014 was used to estimate a dynamic econometric model by applying a system‐generalised method of moments. The empirical results indicate a positive impact of foreign direct investment in agriculture on the carbon dioxide equivalent emission intensity in developing countries. The results provide weak support for the pollution havens hypothesis and imply the importance of coordination between foreign direct investment and environmental policies.

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Section: Resultssupporting

confidence: 88%

Impact of foreign direct investment on greenhouse gas emissions in agriculture of developing countries

Kastratović

2019

Aus J Agri & Res Econ

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“…Conversely study conducted by Kim and Adilov (2012) [12] which analyze the impact of FDI against CO2 emissions concluded that FDI in developing countries significantly reduce CO2 emissions per capita, because the entire of FDI to developing countries will bring as well as advanced technology and more efficient so that production and waste management will be better. While studies conducted in France, Germany, Sweden, and United Kingdom by Zugravu-soilita (2017) [13] found that the impact of FDI on the environment depends on the environmental regulations that are set by the State, the difference in the level of domestic technology between domestic and foreign companies, and domestic labor productivity. The study also found the more stringent regulations of a country in terms of the environment then the lower levels of pollutants, another else otherwise.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Foreign Direct Investment to the Quality of the Environment in Indonesia

2018

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Foreign Direct Investment (FDI) is the main element of the industrial development and economic growth. FDI will bring spillover effect in the form of technology transfer, increased competitiveness and surely will open up employment. But the presence of FDI into the country is not necessarily without problems. In the massif, the presence of FDI will build new factories that will bring the potential negative environmental externalities. This research aims to analyze the impact of FDI on the quality environment represented by CO2 emissions. In addition to the FDI also hosted other macroeconomic variables to see the impact on the environment in the aggregate economy. By using the time series regression analysis, the results show that the presence of the FDI has positive effects significantly to an increase in CO2 emissions. While the other macroeconomic variable, namely, poverty and population growth has a negative effect against CO2 emissions.

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“…On the contrary, the Porter or the pollution halo hypothesis is of the view that environmental regulations increase the competiveness of the MNCs by compelling them to develop environmentally efficient technologies. And these MNCs, through transferring pro‐environmental technologies, positively influence the environment in the host countries .…”

Section: Introductionmentioning

confidence: 99%

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

Adeel-Farooq

Bakar

Raji

2017

Env Prog and Sustain Energy

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This study examines the influence of green field investment, energy consumption, economic growth and urbanization on the environmental performance of nine selected Asian developing countries over 2003–2014 period. It uses Environmental Performance Index (EPI), developed by the Yale University as proxy for environment. By applying the fixed and random effect estimators and robust least squares technique, the empirical findings show that green field investment has adverse effect on the environmental performance of the nine selected Asian developing countries. However, economic growth is found to have positive influence on the environmental performance. The results suggest that strict environmental regulations should be introduced to mitigate the detrimental effects of foreign capital in these countries and there should not be compromise on the quality of foreign capital. In addition, adequate policies should be formulated to enhance economic growth to ensure sustainable environment in these regions. © 2017 American Institute of Chemical Engineers Environ Prog, 37: 1085–1092, 2018

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How does Foreign Direct Investment Affect Pollution? Toward a Better Understanding of the Direct and Conditional Effects

Cited by 159 publications

References 55 publications

Impact of foreign direct investment on greenhouse gas emissions in agriculture of developing countries

Impact of foreign direct investment on greenhouse gas emissions in agriculture of developing countries

The Impact of Foreign Direct Investment to the Quality of the Environment in Indonesia

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

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