Does foreign direct investment asymmetrically affect the mitigation of environmental degradation in Malaysia?

2021 ◽  
Author(s):  
Muhammad Faheem ◽  
Sadam Hussain ◽  
ArsalanTanveer ◽  
Noreen Safdar ◽  
Muhammad Arshad Anwer
Keyword(s):  
Foreign Direct Investment ◽  
Environmental Degradation ◽  
Direct Investment

scholarly journals Unleashing the Indirect Influence of FDI in Environmental Degradation via Financial Development and Economic Growth. New Evidence from Asian Countries

2021 ◽  
Author(s):  
Ghulam Muhmmad Qamri ◽  
Bing Sheng ◽  
Rana Ejaz Ali Khan ◽  
Wasisfah Hanim
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Financial Development ◽  
Environmental Degradation ◽  
Environmental Quality ◽  
Direct Investment ◽  
The Political ◽  
Asian Countries ◽  
Mediating Role

Abstract Background:Scholars in developed and emerging economies have widely tested the interactions between foreign direct investment, financial development, economic growth and environmental degradation. Despite a number of empirical and review studies, it is not yet wrap up either the associations are negative, positive, direct or indirect. Additionally, minor attention is given to the indirect role of foreign direct investment in environmental degradation; perhaps no study has yet demonstrated the mediating role of financial development and economic growth between foreign direct investment and environmental degradation in Asian economies. Referring to the fragmented outputs and consequences as well as lacking the indirect role, the present study examines the influence of foreign direct investment on environmental degradation with the mediating role of financial development and economic growth. Results:Secondary data of 21 Asian countries from 1980-2018 were gathered from World Bank Indicators and then performed STATA to test the paths. Our findings are slightly different from the studies conducted in developed economies. The results indicate that foreign direct investment significantly improves environmental quality by deteriorating environmental pollution. It also significantly improves economic growth in the selected regions. Surprisingly, our study shows that foreign direct investment has a significant negative influence on financial development in the Asian regions. Both financial development and economic growth significantly negatively influence environmental degradation in Asian regions. However, financial development partially mediates while economic growth does not play any mediating role between foreign direct investment and environmental degradation in the Asian countries. Trade openness and population growth as control factors do not show any significant role in the model. Conclusions:This research recommends policymakers to focus on the inflow of foreign direct investment in order to enhance economic growth and environmental quality. It is strongly suggested for policymakers to attenuate the political intervention (e.g. ensure the political stability) in the inflow of foreign direct investment, so financial resources can be impartially distributed in the industrial sector and thus the nations will have an effective financial development system. Other implications have described.

scholarly journals CO2 and Environment Change Evidence from Pakistan

2015 ◽  
Vol 1 (2) ◽  
pp. 57-72 ◽  
Author(s):  
Javeria Masood ◽  
Fatima Farooq ◽  
Muhammad Saeed
Keyword(s):  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Population Growth ◽  
Environmental Degradation ◽  
Direct Investment ◽  
Series Data ◽  
Environment Change ◽  
Healthy Environment ◽  
Long Run ◽  
Bound Test

A safe and healthy environment is a basic right of all living bodies but in current era pollution is at peak. The present study applied bound test based co-integrating technique using annual time series data from 1970-2014 for exploring major determinants of Environmental degradation. Present study included four determinants were energy consumption, gross domestic products, FDI and population growth. Finding of the present observed a significant relationship among energy consumption, GDP, population growth and environmental degradation in short run and long-run. However, foreign direct investment has a positive and significant association with environmental degradation at 10% level of significance both in short and long-run.  The econometric findings suggest that Pakistan has to sacrifice use of energy consumption, to have a safe and healthy environment for better livings; Pakistan should adopt other way of energy like solar energy .While foreign direct investment must be used for pollution free machine or pollution free projects so that we can have clean Pakistan. Government of Pakistan should care about green policy and should spread awareness in public so that population growth should not be a problem of environmental degradation.  This research study made a unique participation in emergent body of empirical studies on practices of environmental awareness in Pakistan by using bounds test based co-integration technique.  

scholarly journals Capital Movements and Environmental Harms

2011 ◽  
pp. 482-497 ◽  
Author(s):  
Christopher Dick ◽  
Andrew K. Jorgenson
Keyword(s):  
Foreign Direct Investment ◽  
Environmental Degradation ◽  
Carbon Dioxide Emissions ◽  
Direct Investment ◽  
Social Dynamics ◽  
Theoretical Orientation ◽  
Developed Countries ◽  
Longitudinal Analyses ◽  
Capital Movements ◽  
Inward Foreign Direct Investment

The authors engage appropriate macrosociological theorization and employ quantitative comparative methods to assess the extent to which various forms of environmental degradation in less-developed countries are tied to inward foreign direct investment in the primary and secondary sectors. Analyzed outcomes include carbon dioxide emissions, industrial organic water pollution, and deforestation. Such forms of environmental harms are known to partially shape migration processes as well as other social dynamics. Results of longitudinal analyses indicate that all three forms of environmental degradation are positively associated with sector-level inward foreign direct investment, which provides broad support for the engaged theoretical orientation.

Empirical Research on the Environmental Effect of Foreign Direct Investment: The Case of Jiangsu Province

2011 ◽  
Vol 204-210 ◽  
pp. 1-4
Author(s):  
Ming Qing Jia ◽  
Jia Yu Yu
Keyword(s):  
Foreign Direct Investment ◽  
International Business ◽  
Environmental Degradation ◽  
Direct Investment ◽  
Environmental Effect ◽  
Jiangsu Province ◽  
Negative Aspect ◽  
Supervision And Management ◽  
Two Sides ◽  
Policy Proposals

After opening its doors to the international business scene, foreign direct investment has made considerable contributions to the economic growth in Jiangsu Province. But as a coin has two sides, there is also a negative aspect that we are faced with the environmental degradation. The purpose of this paper is to analyze the environmental effect of FDI and provide some reference to the harmonious development of economy and environment in Jiangsu province. In this paper, we started with a research about a present situation of foreign direct investment and environment of Jiangsu Province, and then we made an empirical analysis on the environmental effect of foreign direct investment in Jiangsu Province, finally we put forward some policy proposals. The sustained growth of foreign direct investment is one of the important causes of environmental degradation in Jiangsu Province. We should improve environment supervision and management in developing FDI.

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