The Effects of Foreign Direct Investment and Economic Development on Carbon Dioxide Emissions

2014 ◽  
pp. 483-496
Author(s):  
Shu-Chen Chang ◽  
Wan-Tran Huang
Keyword(s):  
Carbon Dioxide ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Carbon Dioxide Emissions ◽  
Direct Investment

FOREIGN DIRECT INVESMENT OUTFLOWS AND ENVIRONMENTAL POLLUTION: HIDDEN COINTEGRATION ANALYSIS FOR TURKEY

2021 ◽  
Vol 6 (11) ◽  
pp. 165-182
Author(s):  
Ahmet Emrah TAYYAR
Keyword(s):  
Carbon Dioxide ◽  
Foreign Direct Investment ◽  
Environmental Pollution ◽  
Environmental Quality ◽  
Carbon Dioxide Emissions ◽  
Direct Investment ◽  
Causality Relationship ◽  
Cointegration Relationship

The relationship between foreign direct investment, which is a type of cross-border and long-term investment, and environmental quality is a current issue that is heavily debated. Foreign direct invesments can ensure economic growth and development of countries, while also causing a change in environmental quality. In the research conducted, it is seen that changes in carbon dioxide emissions with foreign direct capital inflows are mainly investigated from the point of view of the host countries. However, foreign direct invesment outflows may have an impact on the environmental quality of the home country. Because foreign direct invesment outflows can enable the transfer of more environmentally friendly techonogies to the country and strengthen management skills. The impact of foreign direct investment outflows on the home country's environmental pollution is shaped by many factors (scale, technique, and composition effects). In addition to these effects, it is necessary to pay attention to the regional and sectoral distribution of capital outflows. The main aim of this study is to examine the links between Turkey's foreign direct invesment outflows and carbon dioxide emissions for the period 1990-2018. For this reason, a unit root test was applied to variables whose natural logarithm was taken. Tests showed that all series are stable of the same degree. Engle&Granger(1987) and Granger&Yoon(2002) tests were used to determine the cointegration relationship between variables. The crouching error correction model(CECM) was applied to determine the causality relationship. According to the results of the analysis; i) In terms of the Engle&Granger(1987) test, there was no long-term relationship between variables. ii) According to the Granger&Yoon(2002) test, it was determined that there is a bidirectional hidden cointegration relationship between the positive shocks of carbon dioxide emissions and negative shocks of foreign direct invesment outflows. iii) There is a bidirectional asymmetric causality relationship between the positive shocks of carbon dioxide emissions and the negative shocks of foreign direct invesment outflows. iv) It is observed that 1% negative shocks in foreign direct invesment outflows reduce positive shocks in carbon dioxide emissions by 0,26%. As a result, since negative situations in foreign direct invesment outflows have an effect on improving the quality of the environment, the environmental dimension should be taken into account in the policies to be made.

Relationships between Carbon Emissions and Economic Growth, Foreign Direct Investment and Export in China

2013 ◽  
Vol 448-453 ◽  
pp. 4544-4547
Author(s):  
Di Wang ◽  
Guo Zhong Sun
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Foreign Direct Investment ◽  
Carbon Emissions ◽  
Carbon Dioxide Emissions ◽  
Direct Investment ◽  
Negative Impact ◽  
Export Trade ◽  
Carbon Reduction ◽  
Export Structure

China's CO2 emissions from 1990 to 2010 were calculated as well as two economical models were established, and the relationship between carbon dioxide emissions, economic growth, foreign direct investment (FDI) and export trade was analyzed. The result shows that the relations between China's carbon emissions and GDP showing the "N" type. Economic growth and export trade had significantly promoted China's carbon emissions, while the relations between FDI and China's carbon emissions are not significant. During the past years, exports have played an important role in promoting china's economic development. However, the main exporting industries are energy and emission intensive, which reveals disadvantage for carbon reduction. To reverse the negative impact of the export to china's carbon dioxide emissions, export structure should be optimized, and the outdated technology, equipment and products should be eliminated, while energy-conservative and environmental friendly industries should be promoted.

scholarly journals The Symmetric and Asymmetric impact of FDI Inflows, Economic growth, and Capital Investment on CO2 Emission in Oman-Evidence from ARDL and NARDL Approach

2021 ◽  
Author(s):  
Ishfaq Hamid ◽  
Md Shabbir Alam ◽  
Muntasir Murshed ◽  
Pabitra Kumar Jena ◽  
Nadia Sha ◽  
...  
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Foreign Direct Investment ◽  
Carbon Dioxide Emissions ◽  
Direct Investment ◽  
Capital Investment ◽  
Symmetric Model ◽  
Causality Test ◽  
Long Run ◽  
Bound Test

Abstract This study examines the symmetric and asymmetric nexus between capital investment, economic growth, foreign direct investment, and CO2 emissions in Oman during 1980- 2019. For this purpose, we applied ARDL Model for linear cointegration and NARDL model for nonlinear cointegration between capital investment, economic growth, foreign direct investment, and CO2 emissions. The bound test shows the long-term equilibrium relationship among CO2 emissions, capital investment, economic growth, and FDI in both models. The error correction mechanism demonstrates that CO2 emissions congregate to their long-run equilibrium level at a 50.1 percent annual pace of adjustment by integrating capital investment, economic growth, and FDI under the symmetric model. The causality test results show that carbon emissions and FDI, economic growth, and CO2 emissions exhibit bidirectional causal links. While, on the other hand, unidirectional causal links are running from capital investment to GDP. The asymmetric results show that positive shocks to FDI and economic growth have significant tumbling consequences on Oman's carbon dioxide emissions.In contrast, negative shocks in FDI and economic growth substantially increase carbon dioxide emissions. The research findings also reveal that carbon dioxide emissions are more resilient to negative shocks in FDI and economic growth. Based on these results, this study accomplishes that abatement measures should consist of strategies to enhance the deepness of FDI and economic growth in the Oman economy.JEL Classification: F21, Q56, C22

scholarly journals Foreign direct investment and pollution havens: evidence from African countries

2020 ◽  
Vol 7 (12) ◽  
pp. 244-252
Author(s):  
SAID GHARNIT ◽  
Mohamed Bouzahzah ◽  
Jihad Ait Soussane
Keyword(s):  
Carbon Dioxide ◽  
Foreign Direct Investment ◽  
Carbon Dioxide Emissions ◽  
Direct Investment ◽  
Least Square ◽  
Pollution Haven Hypothesis ◽  
African Countries ◽  
Fdi Inflows ◽  
Ordinary Least Square ◽  
Long Run

This study examines the relationship between foreign direct investment (FDI) inflows and carbon dioxide emissions (CE) in order to investigate the validity of the pollution haven hypothesis for 54 African countries, using cointegration approach with dynamic panel data over the period 1960-2018. Based on the panel cointegration analysis, it was concluded that the variables are cointegrated. Moreover, the Dynamic Ordinary Least Square (DOLS) and Fully Modified Ordinary Least Square (FMOLS) results showed that foreign direct investment inflows have a long-run positive relationship with carbon dioxide emissions. Furthermore, according to Granger-Engle causality test results, FDI inflows and carbon dioxide emissions have a positive causal relationship, for both short-run and long-run. Thus, the results of this study validate the pollution haven hypothesis in the African countries. Nevertheless, it is recommended to keep attracting foreign direct investment inflows alongside of implementing mechanisms and instruments for reducing the CO2 emissions under strong environmental policies.

scholarly journals The cyclical and asymmetrical impact of green and sustainable technology research (GSTR) on carbon dioxide emissions (CO2) in BRICS economies: Role of renewable energy consumption, foreign direct investment, and exports

2021 ◽  
Author(s):  
Shoukat Iqbal Khattak ◽  
Manzoor Ahmad ◽  
Shehzad Khan ◽  
Hui Li
Keyword(s):  
Carbon Dioxide ◽  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Environmental Sustainability ◽  
Carbon Dioxide Emissions ◽  
Direct Investment ◽  
Unit Root Test ◽  
Technology Research ◽  
Renewable Energy Consumption ◽  
Sustainable Technology

Abstract Environmental degradation is harming the sustainable development of all societies by reducing the availability of resources for development. And environmental pollution is largely due to the use of fossil fuels, like natural gas, petroleum, coal, heavy oil, bitumen, and oil shales. According to many researchers and environmentalists, clean technologies have been considered an effective method to deal with environmental pollution. Thus, governments and enterprises have invested a significant amount in green research and development expenditures for green and sustainable research to improve clean technologies. However, cyclical fluctuations (increasing in the boom period and declining in the recession) could badly affect the research and development expenditures and green and sustainable research. Moreover, the pro-cyclicality in green and sustainable technology research may have a non-linear effect on environmental sustainability. However, there are no empirical studies on the non-linear link between green and sustainable technology research and environmental sustainability. This paper explored the asymmetrical relationships between green and sustainable technology research and environmental sustainability among the BRICS states, along with foreign direct investment, renewable energy use, and exports as control variables. The data was analyzed by second and third-generation economic techniques such as Slope Heterogeneity and Cross-Section Independence Test, Unit Root Test, structural break unit root test, Panel Cointegration with Structural Breaks cointegration tests, CS-ARDL, AMG, FMOLS, and Dumitrescu-Hurlin Panel Causality test. The results showed that positive shocks to green and sustainable technology research and renewable energy consumption are proper to mitigate carbon dioxide emissions (short- and long-run). Meanwhile, negative shocks to green and sustainable technology research, gross domestic product, foreign direct investment, and exports increase carbon dioxide emissions.

scholarly journals The Economic Determinants of the CO2 Emission in Saudi Arabia: The role and impact: المحددات الاقتصادية لانبعاثات ثاني أكسيد الكربون في المملكة العربية السعودية "الدور والأثر"

2019 ◽  
Vol 3 (12) ◽  
Author(s):  
Amal Hassan ALmalki, Nahla Sadrudden Samargandi, Abla Abdulh
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Saudi Arabia ◽  
Foreign Direct Investment ◽  
Carbon Dioxide Emissions ◽  
Direct Investment ◽  
Trade Openness ◽  
Electricity Consumption ◽  
Economic Determinants

This study examined the impact of a number of economic determinants such as economic growth, electricity consumption, foreign direct investment, financial development, trade openness and their contribution to increase or decrease of carbon dioxide (CO2) emissions in Saudi Arabia. To explore the long-run relationships between the variables, the autoregressive distributed lag (ARDL) methodology, is employed to analyze time series data for the period 1980-2017. Results indicates that there has is a long-term positive relationship between electricity consumption, economic growth, trade openness, and carbon dioxide emissions. A long-term negative relationship is existed between both foreign direct investment and the financial development, and carbon dioxide emissions. Therefore, we see how important it is to reduce dependence on fossil fuels and switch to renewable energy in electricity production. This indicates the importance of Vision 2030 to reduce dependence on oil as a major source of income and to support economic growth by developing the non-oil sector. And the importance of raising the efficiency of funding and providing the necessary liquidity to support the industrial sectors with the imposition of strict environmental laws.        

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