Testing Pollution Haven and Pollution Halo Hypotheses for the Energy Sector: Evidence from Turkey

FDI and Environmental Sustainability Nexus: Testing the Pollution Haven Hypothesis in the Presence of Regulatory Quality

“…The findings of the study revealed that the PHH is valid in Turkey given the positive relationship between the two variables. Similarly, Tayyar (2022) confirmed the validity of the PHH for the energy sector in Turkey via the vector error correction model and the Toda-Yamamoto test. Bulus and Koc (2021) found that an increase in FDI leads to a surge in environmental pollution, therefore validating the PHH in Korea.…”

“…It is worth noting that the environmental impact of foreign direct investment is still being debated. Whereas some studies find that FDI inflows have an adverse effect on the environment (Gorus & Aslan, 2019;Ur Rahman et al, 2019;Assamoi et al, 2020;Bediako, 2020;Bulus & Koc, 2021;Çamkaya et al, 2022;Tayyar, 2022), others note that FDI contributes to environmental sustainability, especially when those investments are green initiatives and involve the transfer of ecologically friendly technologies (Jugurnath & Emrith, 2018;Salehnia et al, 2020;Demena & Afesorgbor, 2020;Pradhan et al, 2022). The purpose of this research, therefore, is to contribute to the raging debate on the FDI-environment nexus in the context of Ghana.…”