Distinguishing the Complex Effects of Foreign Direct Investment on Environmental Pollution: Evidence from China

2022 ◽  
Vol 43 (3) ◽  
Author(s):  
Jianxun Chen ◽  
Hui Tan ◽  
Yingran Ma
Keyword(s):  
Foreign Direct Investment ◽  
Environmental Pollution ◽  
Direct Investment

scholarly journals Impacts of Foreign Direct Investment and Industrial Structure Transformation on Haze Pollution across China

2021 ◽  
Vol 13 (10) ◽  
pp. 5439
Author(s):  
Chenggang Li ◽  
Tao Lin ◽  
Zhenci Xu ◽  
Yuzhu Chen
Keyword(s):  
Foreign Direct Investment ◽  
Environmental Pollution ◽  
Direct Investment ◽  
Industrial Structure ◽  
Spatial Data Analysis ◽  
Annual Data ◽  
Eastern Region ◽  
Structure Transformation ◽  
Haze Pollution ◽  
The Impact

With the development of economic globalization, some local environmental pollution has become a global environmental problem through international trade and transnational investment. This paper selects the annual data of 30 provinces in China from 2000 to 2017 and adopts exploratory spatial data analysis methods to explore the spatial agglomeration characteristics of haze pollution in China’s provinces. Furthermore, this paper constructs a spatial econometric model to test the impact of foreign direct investment (FDI) and industrial structure transformation on haze pollution. The research results show that the high-high concentration area of haze pollution in China has shifted from the central and western regions to the eastern region and from inland regions to coastal regions. When FDI increases by 1%, haze pollution in local and neighboring areas will be reduced by 0.066% and 0.3538%, respectively. However, the impact of FDI on haze pollution is heterogeneous in different stages of economic development. FDI can improve the rationalization level of industrial structure, and then inhibit the haze pollution. However, FDI inhibits the upgrading level of industrial structure to a certain extent, and then aggravates the haze pollution. The research in this paper provides an important decision-making basis for coordinating the relationship between FDI and environmental pollution and realizing green development.

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.

Investigation of the Foreign Direct Investment and Environmental Pollution Nexus for Developing Countries

2021 ◽  
pp. 320-338
Author(s):  
Orkun Çelik ◽  
Özge Korkmaz ◽  
Zafer Adalı
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Environmental Pollution ◽  
Direct Investment ◽  
Panel Cointegration ◽  
Cointegration Test ◽  
Annual Data ◽  
Pollution Haven ◽  
Panel Cointegration Test

In theory, the foreign direct investment and environmental pollution nexus is explained by three hypotheses. Firstly, pollution haven hypothesis assumes that there is a positive nexus between these variables. Secondly, pollution halo hypothesis supposes that there is negative connection between these variables. Lastly, neutrality hypothesis asserts the non-existence of the connection between these variables. In recent years, many researchers have frequently tested whether these hypotheses are valid for different countries. In this study, applying Westerlund panel cointegration test, the authors aim to explore the nexus between foreign direct investment and environmental pollution for 23 developing countries after global crisis. For this aim, they use annual data covering the period 2009-2019. According to the obtained empirical findings, the presence of the long-term nexus between foreign direct investment and environmental pollution is not detected for 23 developing countries. Accordingly, the authors can say that there is neutrality hypothesis.

Terrorism, environmental pollution, foreign direct investment (FDI), energy consumption, and economic growth: Evidences from China, India, Israel, and Turkey

2020 ◽  
pp. 0958305X2091940
Author(s):  
Melike E Bildirici
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Environmental Pollution ◽  
Direct Investment ◽  
Panel Cointegration ◽  
Panel Causality ◽  
Policy And Strategy ◽  
Cointegration Tests ◽  
Causality Tests

In this paper, it was aimed to investigate the relation between economic growth, terrorism, foreign direct investment (FDI) inflow, environmental pollution, and energy consumption in China, India, Israel, and Turkey for a time span of 43 years from 1975 to 2017. Three different panel cointegration methods to determine the cointegration relation and two different causality methods to find the direction of causality were simultaneously used, since the presence of cointegration and direction of causality are fundamental to design economic policy and strategy. After similar results from panel cointegration tests were obtained, the causality tests were applied. Panel causality tests determined the evidence of uni-directional causality from terrorism, FDI, and energy usage to CO2 emission.

Impact of foreign direct investment inflows on environmental pollution in Turkey

2016 ◽  
Author(s):  
Yilmaz Bayar
Keyword(s):  
Foreign Direct Investment ◽  
Environmental Pollution ◽  
Direct Investment ◽  
Global Economy ◽  
Developed Countries ◽  
Foreign Direct Investments ◽  
Causality Analysis ◽  
Causality Test ◽  
The Impact ◽  
Foreign Direct Investment Inflows

The globalization accelerated especially as of 1980s and the countries began to integrate global economy and remove the constraints on the flows of goods, services and capital. In this context, the developed countries partly shifted their environmentally hazardous production activities to the developing countries especially by means of foreign direct investments. This study investigates the impact of foreign direct investment inflows on the environmental pollution in Turkey during the period 1974-2010 by using Toda and Yamamoto (1995) causality test. We found that there was a bidirectional causality between foreign direct investment inflows and  emissions.Keywords: Foreign direct investment inflows,  emissions, causality analysis

scholarly journals Environmental Pollution a Negative Externality from China Pakistan Economic Corridor (CPEC): Policy implications for Pakistan

2020 ◽  
Vol 11 (3) ◽  
pp. 5-8
Author(s):  
Rehmat Karim ◽  
Faqeer Muhammad ◽  
Javed Akhter Qureshi ◽  
Naveed Razzaq ◽  
Akber Ali
Keyword(s):  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Environmental Pollution ◽  
South Asia ◽  
Direct Investment ◽  
Global Economy ◽  
Middle Eastern ◽  
Trade Openness ◽  
Policy Implications ◽  
The Impact

The China-Pakistan Economic Corridor (CPEC) isconsidered as the ‘flagship’ project of China’s Belt andRoad Initiative (BRI) and has been widely acclaimedby both Chinese and Pakistani officials often terming itas ‘game-changer’ to overcome Pakistan’s lingeringissues of energy and economic crisis. Within theframework of CPEC, China is investing more than 56billion US dollars as Foreign Direct Investment (FDI)in various energy and infrastructure projects includinga vast network of railways, highways, economic zonesand gas pipelines. While much has been debated andwritten about various projects under CPEC in theexisting academic discourses, vis-à-vis threats to thebiodiversity (Nabi et al., 2017), its potentialimplications to environmental hazards (Ali, 2018) andto overcome energy shortfall of Pakistan (Kugelman,2017). However, scientific study to reinforce the issuesof environmental pollution, particularly related toCEPEC coal-based energy projects have been stilllacking.The pertained literature on CPEC consisted qualitativestudies to inspect and judge different aspects such asimportance of CPEC for both countries and its effectson geo political of South Asia. Challenges for CPEC inPakistan, South Asia and foreign policy betweenChina-Pakistan), as Nan, (2015) explained that thisproject is not only valuable for Pakistan and China, butit is also beneficial for the global economy byincluding several other countries. Furthermore, Li andSun, (2015) and Irshad, etal, (2015) reported theimportance of CPEC and it long and short-termbenefits for both countries. Further, Hussain and Khan(2017) also stated that it will enhance the cooperationbetween two countries and advantageous for Chinese,Middle Eastern and South Asian people (Ali, 2016).Further, Wolf, (2017) explained the insights, potentialsand challenges concerning CPEC and domestic levelcooperation between China and Pakistan.In addition, quantitative studies focused to shed a lighton the impact of China Pakistan Economic Corridor(CPEC) (Such as, impact on gdp, socio-economy,trade, stock market, energy sector and infrastructure).CPEC will build rails and roads infrastructure andinfrastructure development may decrease the povertyand increases the agriculture development in Pakistan(Ahmed & Mustafa, 2016). Most recent articleexamined the impact of CPEC impact on energy(energy consumption and energy saving potential) inthe prospect of Pakistan (Mirza, Fatima, Ullah, 2019).A latest study surveyed in Pakistan and their researchresults shows that entrepreneur’s attitude andintentions to China and Pakistan Economic Corridor(CPEC) development is positive, it means CPECproject also designing an entrepreneurial environment(Kanwal et al., 2019).A large number of studies (Begum, etal., 2015; Ozturk,and Acaravci, 2010) have discussed various elementsand causes of CO2 emissions. Similarly, manyresearches (Khurshid, etal., 2018; Hadi, etal., 2018;Hussain, 2017; Hussain, 2015) on Pakistan-Chinarelations in the context of economy, society andgeopolitical point of view. Present study is aimed toinvestigate the CPEC development effects i.e. grossdomestic product (gdp), foreign direct investment (fdi),trade openness (top), energy consumption (enguse) onenvironmental pollution (CO2) in Pakistan usingFMOLS and DOLS methods.

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