scholarly journals ARE FOREIGN DIRECT INVESTMENTS EFFECTIVE ON ENVIRONMENTAL QUALITY IN TURKEY? AN APPROACH WITH NON-LINEAR ARDL METHOD

2022 ◽  
Author(s):  
Serhat ÇAMKAYA ◽  
İbrahim Halil POLAT ◽  
Ümmügülsüm POLAT
Keyword(s):  
Environmental Quality ◽  
Foreign Direct Investments ◽  
Non Linear

The relationship between environmental degradation, energy use and economic growth in Nigeria: new evidence from non-linear ARDL

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hammed Oluwaseyi Musibau ◽  
Waliu Olawale Shittu ◽  
Fatai Olarewaju Ogunlana
Keyword(s):  
Economic Growth ◽  
Environmental Degradation ◽  
Environmental Quality ◽  
Energy Use ◽  
Partial Sums ◽  
Future Research ◽  
Ekc Hypothesis ◽  
Content Type ◽  
Non Linear ◽  
The Relationship

Purpose The purpose of this paper is to study the relationship among environmental degradation, energy use and economic growth, thus lending a voice to testing the relevance, or otherwise, of the environmental Kuznets curve (EKC) hypothesis in Nigeria. Design/methodology/approach The authors rely on the secondary data obtained from World Bank’s World Development Indicators for Nigeria, between 1981 and 2014. The non-linear autoregressive distributed lag (ARDL) technique is used after examining the unit root properties – using the augmented Dickey–Fuller and Phillips–Perron methods – and the long-run relationship – using the ARDL bounds approach to estimate the asymmetries in the effects of economic growth on the environment. Findings The findings of this study uphold the relevance of the EKC hypothesis in Nigeria, as the growth of GDP first reduces the environmental quality but raises it over time. Furthermore, the use of energy is found to deteriorate environmental quality, given that CO2 rises by 0.002% for a unit increase in the consumption of energy in Nigeria. Research limitations/implications A limitation to this research is the data coverage, which is just between 1981 and 2014, based on availability. One other limitation is the use of electric power consumption as a proxy for energy use (because of the difficulty in obtaining accurate data on energy consumption in Nigeria). Future research should, therefore, test different other proxies, to either agree with the findings or justify any deviation therefrom. Also, the use of up-to-date data is recommended as an improvement to this study, while a non-linear technique should be used on studies involving the panel of countries. Originality/value Many studies have examined this relationship by simply taking the square of GDP as a measure of its non-linear effect on the environment. The authors are one of the first who consider the asymmetric effect of economic growth on the environment through the non-linear ARDL technique. With this, the partial sums of positive and negative changes in economic growth on the environment are easily established.

scholarly journals Foreign finance, economic growth and CO2 emissions Nexus in OECD countries

2019 ◽  
Vol 12 (2) ◽  
pp. 161-181 ◽  
Author(s):  
Faris Alshubiri ◽  
Mohamed Elheddad
Keyword(s):  
Economic Growth ◽  
Linear Relationship ◽  
Environmental Quality ◽  
Foreign Investment ◽  
Fixed Effects ◽  
Oecd Countries ◽  
Content Type ◽  
Non Linear ◽  
The Relationship ◽  
Threshold Point

Purpose This study aims to examine the relationship between foreign finance, economic growth and CO2 to investigate if the environmental Kuznets curve (EKC) exists as an empirical evidence in 32 selected Organization for Economic Co-operation and Development (OECD) countries. Design/methodology/approach This study used quantitative analysis to test two main hypotheses: H1 is the U-shape relationship between foreign finance and environment, and H2 is the N-shaped association between economic growth and environment. In doing so, this study used panel data techniques. The panel set contained 32 countries over the period from 1990 to 2015, with 27 observations for each country. This study applied a panel OLS estimator via fixed-effects control to address heterogeneity and mitigate endogeneity. Generalized method of moments (GMM) with fixed effects-instrumental variables (FE-IV) and diagnostic tests were also used. Findings The results showed that foreign finance and environmental quality have an inverted U-shaped association. The three proxies’ foreign investment, foreign assets and remittance in the first stages contribute significantly to CO2 emissions, but after the threshold point is reached, these proxies become “environmentally friendly” by their contribution to reducing CO2 emissions. Also, a non-linear relationship denotes that foreign investment in OECD countries enhances the importance, as a proxy of foreign finance has greater environmental quality than foreign assets. Additionally, empirical results show that remittances received is linked to the highest polluted levels until a threshold point is reached, at which point it then helps reduce CO2 emissions. The GMM and FE-IV results provide robust evidence on inverse U-shaped relationship, while the N-shaped relationship explains that economic growth produces more CO2 emissions at the first phase of growth, but the quadratic term confirms this effect is negative after a specific level of GDP is reached. Then, this economic growth makes the environment deteriorate. These results are robust even after controlling for the omitted variable issue. The IV-FE results indicate an N-shaped relationship in the OECD countries. Practical implications Most studies have used different economic indicators as proxies to show the effects of these indicators on the environment, but they are flawed and outdated regarding the large social challenges facing contemporary, socio-financial economic systems. To overcome these disadvantages, the social, institutional and environmental aspects of economic development should also be considered. Hence, this study aims to explain this issue as a relationship with several proxies in regard to environmental, foreign finance and economic aspects. Originality/value This paper uses updated data sets for analyzing the relationship between foreign finance and economic growth as a new proxy for pollution. Also, this study simulates the financial and environmental future to show their effect on investments in different OECD countries. While this study enhances the literature by establishing an innovative control during analysis, this will increase to add value. This study is among the few studies that empirically investigate the non-linear relationship between finance and environmental degradation.

scholarly journals The Impact of Terrorism Activities As Threat To Unstable Economy on Foreign Direct Investments FDI: A Panel Study of 33 Sub-Saharan African Countries

2020 ◽  
Vol 5 (4) ◽  
Author(s):  
Yao HongXing ◽  
Winfred Okoe Addy ◽  
Samuel Kofi Otchere ◽  
Robert Yao Aaronson ◽  
Jean-Jacques Dominique Beraud
Keyword(s):  
Foreign Direct Investment ◽  
Linear Relationship ◽  
Direct Investment ◽  
Panel Study ◽  
Random Effect ◽  
Foreign Direct Investments ◽  
African Countries ◽  
Non Linear ◽  
Sub Saharan ◽  
The Impact

The study aims to assess the impact of terrorism activities on foreign direct investment in a panel study of 33 Sub-Saharan African countries. In order to achieve the objective of the study, it employed panel data methodologies such as GLS random-effect, ML random-effect, fixed effect regression, generalized linear model and multivariate regression methods to enable it make statistically and robust inference or conclusion. However, the study found that there is an inverse linear relationship or impact on foreign direct investment in Sub-Saharan Africa. Also, the study found out that economic growth and foreign direct investment are inversely related and corruption control has positive and direct linear relationship with foreign direct investment. As the study focused on the linear relationship of terrorism activities and foreign direct investments, it recommends further studies into the subject-matter by employing the non-linear approaches to ascertain the non-linear relationship between the two.

scholarly journals Foreign Direct Investments and Environmental Quality in Sub-Sahara Africa: The Merits of Policy and Institutions for Environmental Sustainability

2021 ◽  
Author(s):  
Emmanuel Duodu ◽  
Evans Kwarteng ◽  
Eric Fosu Oteng-Abayie ◽  
Prince Boakye Frimpong
Keyword(s):  
Environmental Quality ◽  
Environmental Sustainability ◽  
Foreign Direct Investments ◽  
Domestic Investment ◽  
Method Of Moment ◽  
Moment System ◽  
Environmental Deterioration ◽  
Long Run ◽  
Short Run ◽  
Ssa Countries

Abstract Environmental concerns in today’s world cannot be overemphasised. These concerns have interested policymakers and researchers to delve into the causes in order to help mitigate environmental deterioration and support policies and institutions for environmental sustainability. This study, therefore, investigates the association between foreign direct investment (FDI) and environmental quality, taking into account policies and institutions for environmental sustainability across 23 Sub-Sahara Africa (SSA) countries. Employing the generalised method of moment (system-GMM) for the analysis, the results revealed, among others things, that FDI improves environmental quality in the long run, whereas in the short run, FDI diminishes environmental quality when interacted with policies and institutions for environmental sustainability. Furthermore, policies and institutions for environmental sustainability and domestic investment improve environmental quality in SSA in both the long and short run. The study, thus, concludes that policies and institutions for environmental sustainability in SSA are important as they improve environmental quality as well as complement FDI to improve environmental quality in the long run. The study further establishes that domestic investment is important to improve environmental quality in SSA. The study recommends policies for improving environmental quality to policymakers and stakeholders in SSA.

scholarly journals The Economic Development Impact To Environment Quality : Kuznet’s Curve Hyphothesis and Non Linier Regression Approach

2021 ◽  
Vol 2 (3) ◽  
pp. 864-874
Author(s):  
Rizka Zulfikar ◽  
Farida Yulianti ◽  
Teguh Wicaksono ◽  
Prihatini Ade Mayvita
Keyword(s):  
Economic Development ◽  
Linear Regression ◽  
Environmental Quality ◽  
Quality Index ◽  
Secondary Data ◽  
Industrial Sector ◽  
Department Of Energy ◽  
Data Types ◽  
Environment Quality ◽  
Non Linear

This study aims was to identify impact of economic development factors to the the environment quality by using Kuznet's Curve Hyphotesis and non linear regression.  The determinants studied are indicators of economic development such as Gross Domestic Regional Income (GDRI) of the industrial sector, mining sector, agricultural/plantation /forestry/fishery/livestock sectors, poverty, unemployment and human development index (HDI).  While the environmental quality indicators used are Water Quality Index (WQI), Air Quality Index (AQI) and Land Cover Quality Index (LCQI).  The data used is secondary data from the Department of Environment, the Department of Energy and Mineral Resources,  and also the Central Bureau of Statistics of South Kalimantan Province.  Secondary data types used include WQI, AQI, LCQI, GDRI, poverty, unemployment and HDI data for the period 2006 – 2020. The method used in this study is descriptive quantitatively using Kuznet's Curve hypothesis and non linear regression.   The final results obtained from this study include (1) The influence of economic development indicators on environmental quality is in accordance with Kuznet's Curve hypothesis and shows non-linear relationships. (2) Only the unemployment indicator is not identified non-linearly due to the adjusted value of R Square < 0 and the significance of the > 0.05.

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