The Impact of FDI Inflows and Environmental Quality on Economic Growth: an Empirical Study for the MENA Countries

Abdouli, Mohamed; Hammami, Sami

doi:10.1007/s13132-015-0323-y

Cited by 117 publications

(63 citation statements)

References 76 publications

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“…Their findings confirm the FDI-growth nexus for the region of their interest with the exclusion of Egypt and Lebanon. This is similar to the work of Abdouli and Hammami (2017) in the case of the MENA countries. The work of Srinivasan et al (2011) reveals a bidirectional link between FDI and economic growth for most of the SAARC countries with the exclusion of India where a unidirectional link was found.…”

Section: Review Of Literaturesupporting

confidence: 87%

“…Additionally, Adams (2009) submits that the relationship between FDI and economic growth is positive only in the long run. Abdouli and Hammami (2017) found a country-based rather general impact of FDI inflow on economic growth. Their findings confirm the FDI-growth nexus for the region of their interest with the exclusion of Egypt and Lebanon.…”

Section: Review Of Literaturementioning

confidence: 98%

“…Others prove neutrality between the series in question. For instance, recent studies (Kalai and Zghidi 2019; Sokhanvar 2019; Sarkodie and Strezov 2019) confirmed the said nexus, while other authors such as the studies of Zandile and Phiri (2019), Nyoni (2018), Abdouli and Hammami (2017), and Herzer (2012) questioned the FDI-growth nexus. The case presented above is similar to the South African scenario.…”

Section: Introductionmentioning

confidence: 95%

“…The finding could not ascertain the impact of FDI inflow on economic expansion both directly and indirectly. Other studies with opposing view include Abdouli and Hammami (2017) and Herzer (2012) for the MENA countries which revealed a negative connection between FDI inflow and economic progress in Egypt and Lebanon. Adams (2009) shows a short-run negative impact of FDI on domestic investment.…”

Section: Review Of Literaturementioning

confidence: 99%

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Modeling the nexus between coal consumption, FDI inflow and economic expansion: does industrialization matter in South Africa?

Joshua

Bekun

Adedoyin

2020

Environ Sci Pollut Res

102

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This study examines the role of industrialization in the energy-growth-FDI nexus for the case of South Africa using data over the period 1970 to 2018. The empirical exercise was conducted using Pesaran Autoregressive Distributed Lag (ARDL) bounds testing approach. To accomplish our study objective, we analyze stationarity properties of the series using the unit root test after which we applied Bayer-Hanck (B-H) combined technique to cointegration to assess whether a long-run relationship exists among the series. Empirical results show that a 1% change in FDI account for 0.002% and 0.013% increase in economic expansion in the short-and long-run respectively. Also, a 1% increase in coal consumption influence GDP negatively by 0.083% and 0.207% in the short and long run respectively. Furthermore, a 1% increase in total natural resource rent positively affects GDP by 0.02% and 0.05% respectively in the short and long run. Industrialization, on the other hand, demonstrates a positive and significant impact on the economic growth process both in the short and long run. Industrialization contributes 0.506% and 1.274% to economic expansion both in the short and long run respectively. The causality tests suggest that a one-way causal link running from FDI to industrialization and from industrialization to coal consumption exists. Finally, FDI inflow drives total natural resource rents in South Africa. This study also gives reliable growth and energy policy proposals to policymakers applicable to countries around the globe.

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Section: Review Of Literaturesupporting

confidence: 87%

Section: Review Of Literaturementioning

confidence: 98%

Section: Introductionmentioning

confidence: 95%

Section: Review Of Literaturementioning

confidence: 99%

See 2 more Smart Citations

Modeling the nexus between coal consumption, FDI inflow and economic expansion: does industrialization matter in South Africa?

Joshua

Bekun

Adedoyin

2020

Environ Sci Pollut Res

102

View full text Add to dashboard Cite

show abstract

“…Economic theory provides us with many reasons why FDI may result in enhanced growth performance of the host country (Abdouli & Hammami, 2015;Al-Mulali, 2012).…”

Section: Ardl Approach To Co-integrationmentioning

confidence: 99%

Is Foreign Direct Investment a Cause of Environmental Degradation in Pakistan? An ARDL Approach to Cointegration

Hamid

2019

JMR

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This study has investigated the empirical relationship between FDI and environmental degradation in Pakistan and 43 years of data is used in the study started from 1972 to 2014.Empirical tests show that there exist mix-cointegrating series, so ARDL bounds testing is applied to check the short-long run cointegration among the variables. Results concluded that FDI causes CO 2 emissions in long and short-run both. To check the direction of causality between variables, an ARDL Granger test is applied. It proved that FDI and CO 2 emissions have bidirectional causality and causing each other from both ways.

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Should China prefer more foreign direct investment inflows to environmental change?

2020

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This study aims to investigate the impact of foreign direct investment (FDI) on environmental quality in China over the period 1984-2014. Specifically, the research focuses on the possibility of the effects of FDI on the quality of the environment in China. We employ the bound test approach and found a significant cointegration among environmental quality and other variables, the autoregressive distributed lag model (ARDL) model used after finding a cointegration connection between environmental quality and other independent variables to explore the short and long-run relationships among the variables. The coefficient of the long-run (ARDL) model indicates that the impact of FDI on the quality of the environment is positive, and it implies that better FDI inflows in China, resulting in higher energy consumption and thus leading in the direction of higher release of CO 2 emission. Moreover, in the short run the coefficient obtained by the error correction mechanism shows that FDI does not improve the environmental quality, and it leads to more environmental degradation in China. The causality approach specifies that FDI and environmental quality have a unidirectional relationship. Therefore, the finding suggests that China should foray balance between FDI inflows and environmental quality, and encourage more FDI inflows, particularly in technology-intensive and environment-friendly industries, to improve environmental quality.

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The Impact of FDI Inflows and Environmental Quality on Economic Growth: an Empirical Study for the MENA Countries

Cited by 117 publications

References 76 publications

Modeling the nexus between coal consumption, FDI inflow and economic expansion: does industrialization matter in South Africa?

Modeling the nexus between coal consumption, FDI inflow and economic expansion: does industrialization matter in South Africa?

Is Foreign Direct Investment a Cause of Environmental Degradation in Pakistan? An ARDL Approach to Cointegration

Should China prefer more foreign direct investment inflows to environmental change?

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