The Impact of Foreign Direct Investment on Environment Degradation: Evidence from Emerging Markets in Asia

To, Anh Hoang; Dao, Ha; Nguyen, Ha Minh; Vo, Duc Hong

doi:10.3390/ijerph16091636

Cited by 97 publications

(56 citation statements)

References 63 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…To et al found that in the first stage of economic growth, FDI caused the environment to deteriorate, but declined in the next stage. In order to develop appropriate and good policies to attract FDI, decision-makers in the host country need to have a clear and accurate understanding of the best level of FDI in their country [44]. In our study, in the short-term, India and Russia's CO 2 emissions are inversely causal with FDI, which indicates that FDI in these two countries contributes to their CO 2 emissions.…”

Section: Discussionmentioning

confidence: 78%

Bootstrap ARDL Test on the Relationship among Trade, FDI, and CO2 Emissions: Based on the Experience of BRICS Countries

Chang

et al. 2020

Sustainability

View full text Add to dashboard Cite

We used the Bootstrap Autoregressive Distributed Lagged Model (ARDL) method to test the relationship among BRICS (Brazil, Russia, India, China, and South Africa) countries’ trade, foreign direct investment (FDI), and CO2 emissions. We found that Brazil’s CO2 emissions and FDI have a cointegration relationship with the trade on the lag of one-period. Russia and India and CO2 emissions and trade have a cointegration relationship with FDI on the lag of one-period. In the long-term, Brazil’s FDI has a long-term causal relationship with the trade on the lag of one-period. The trade between Russia and India has a long-term causal relationship with FDI on the lag of one-period. Among other BRICS variables, Russian trade and FDI on the lag of one-period of CO2 emissions and FDI and CO2 emissions are on the lag of one-period on trade, which McNown et al. mentioned is the degeneration case #1 in their paper; while China’s trade and FDI on the lag of one-period of CO2 emissions is the country of degeneration case #2. When we examined short-term causality, we found that CO2 emissions showed a causal relationship with trade, while FDI and CO2 emissions were less pronounced. Trade has a positive causal relationship with FDI. These variables are different in different situations and in different countries. These results should be related to BRICS countries’ FDI, international trade development, and their different CO2 emission policies.

show abstract

Section: Discussionmentioning

confidence: 78%

Bootstrap ARDL Test on the Relationship among Trade, FDI, and CO2 Emissions: Based on the Experience of BRICS Countries

Chang

et al. 2020

Sustainability

View full text Add to dashboard Cite

show abstract

“…Results are indicating that FDI leads to the emission of greenhouse gases that causes poor quality of the environment. Therefore, policymakers of the host country should have the knowledge of the threshold for peak inflow of FDI to have a good balance between environment and FDI growth [19,21]. Moreover, the study found a positive and significant association between economic growth and environmental degradation, so this study suggests that the government should devise the policies for green growth rather than economic growth.…”

Section: Autoregressive Distributed Lag (Ardl): Dependant Variable Ismentioning

confidence: 74%

“…The second school of thought is the examination focused on the relationship between socioeconomic factors and environmental degradation. The final stream is the examination of the hypothesis that there is a fundamental relationship between industrialization and GDP that is represented by FDI flows and CO 2 emissions [19][20][21]. The linkage between environmental degradation and economic growth is directly affected by governance [22,6].…”

Section: Introductionmentioning

confidence: 99%

Impact assessment of socioeconomic factors on dimensions of environmental degradation in Pakistan

et al. 2020

View full text Add to dashboard Cite

Environmental degradation is a natural and socioeconomic cause-effect phenomenon that is widespread all over the world. The current study investigates the impact of socioeconomic factors on dimensions of environmental degradation in Pakistan for the period of 1984 to 2017. The impact of socioeconomic factors on dimensions of environmental degradation is investigated using the augmented Dicky-Fuller unit root test and the autoregressive distributed lag bounds test. The cumulative sum of recursive residuals and the cumulative square sum of recursive residuals were used to check the stability of the socioeconomic parameters on dimensions of environmental degradation of three investigated models. The study observed a negative and significant impact on environmental degradation in all three models. The analysis incorporated that FDI, per capita GDP, industrialization and the total population have a positive and significant effect on environmental degradation in the long run; as FDI, per capita GDP and total population increase, this will cause environmental degradation to increase. The rural population and agricultural land have an insignificant association with environmental degradation. The present study also indicates that dimensions of the environmental degradation in Pakistan are mostly influenced by the governance. However, this research will help the policy makers to understand the importance of the governance and environmental degradation.

show abstract

“…The orders of the variables in the vectors reflect the exclusion restrictions, which are widely agreed in the economic theories and empirical literature. Firstly, studies on the link between the oil market and the agricultural markets often agreed on the exogeneity of the former to the latter (Kilian 2009;Wang et al 2014;Qiu et al 2012;McPhail et al 2012;Mcphail 2011;To et al 2019). Therefore, oil-related variables have higher orders in the vector of endogenous variables.…”

Section: Methodsmentioning

confidence: 99%

Modeling the Impact of Agricultural Shocks on Oil Price in the US: A New Approach

Hồ

et al. 2019

JRFM

Self Cite

View full text Add to dashboard Cite

The current literature has generally considered prices of the agricultural commodity as an endogenous factor to crude oil price. As such, the role of the agricultural market in the energy sector has been largely ignored. We argue that the expansion of agricultural production may trigger a significant increase in oil price. In addition, the world has recently witnessed a growth in biofuel production, leading to an increase in the size of the agricultural sector. This study is conducted to examine the impact of different agricultural shocks on the oil and agricultural markets in the US for the period from 1986 to 2018. The study utilizes the Structural Vector Autoregressive (SVAR) model to estimate the relationship between the agricultural market and the crude oil market. Moreover, the variance decomposition is also used to quantify the contribution of agricultural demand shocks on oil price variations. Findings from this paper indicate that different agricultural shocks can have different effects on oil price and that corn use in ethanol plays an important role in the impact of corn demand shocks on oil price. We find evidence that the agricultural market can have an impact on oil prices through two main channels: indirect cost push effect and direct biofuel effect. Of these, the biofuel channel unexpectedly suggests that the expansion of bioethanol may in fact foster the dependency of the economy on fossil fuel use and prices.

show abstract

The Impact of Foreign Direct Investment on Environment Degradation: Evidence from Emerging Markets in Asia

Cited by 97 publications

References 63 publications

Bootstrap ARDL Test on the Relationship among Trade, FDI, and CO2 Emissions: Based on the Experience of BRICS Countries

Bootstrap ARDL Test on the Relationship among Trade, FDI, and CO2 Emissions: Based on the Experience of BRICS Countries

Impact assessment of socioeconomic factors on dimensions of environmental degradation in Pakistan

Modeling the Impact of Agricultural Shocks on Oil Price in the US: A New Approach

Contact Info

Product

Resources

About