The lesser of two evils: an empirical investigation of foreign direct investment-pollution tradeoff

Kim, Myeong Hwan; Adilov, Nodir

doi:10.1080/00036846.2011.566187

Cited by 104 publications

(49 citation statements)

References 20 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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“…According to Hoffmann et al [43] the impact of foreign investment on pollution is contingent upon the level of development, as the pollution haven hypothesis holds only for less developed countries, not developed countries. According to Kim and Adilov [44] both the pollution haven and the pollution halo hypotheses may hold together in developing countries.…”

Section: Literature Reviewmentioning

confidence: 99%

Effect of FDI on Pollution in China: New Insights Based on Wavelet Approach

et al. 2018

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By applying the wavelet tool, this study examines the effect of foreign direct investment (FDI) on pollution in China, for the period 1982 to 2016. Carbon dioxide and sulfur dioxide emissions are used as pollution variables. The results reveal that FDI positively affected pollution at high frequency (short term) during the 1980s and after 2000, and at low frequency (long term) but not at medium frequency (medium term) for the entire time period. It demonstrates that FDI increases pollution both in the short and long term, but not in the medium term. It indicates that FDI has created pollution havens in China. For robustness analysis, spectral causality test was applied. The results of this causality test indicate that FDI causes CO2 emissions both in the short-run and long-run. This suggests that in China FDI predicts CO2 emissions. Thus, stringent environmental rules are required to restrict the inflows of foreign dirty industries in China.

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“…FDI impact is sensitive to econometric specifications and a selection of countries and time periods in the sample. 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.…”

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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The lesser of two evils: an empirical investigation of foreign direct investment-pollution tradeoff

Cited by 104 publications

References 20 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

Effect of FDI on Pollution in China: New Insights Based on Wavelet Approach

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

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