Causal Interaction between FDI, Corruption and Environmental Quality in the MENA Region

Bardi, Wajdi; Hfaiedh, Mohamed Ali

doi:10.3390/economies9010014

Cited by 16 publications

(4 citation statements)

References 40 publications

(47 reference statements)

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“…Higher income of the countries contributes to high level of CO2 emission due to higher industries' activities. This is consistent with recent finding from [4] and [23]. The estimation results also indicate the EKC is valid with the respect to our sample.…”

Section: Resultssupporting

confidence: 93%

Re-assessing Pollution Haven Hypothesis (PHH): corruption, FDI and CO₂ emission

Huay

Li²,

Shah

2022

IOP Conf. Ser.: Earth Environ. Sci.

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In recent years, studies on the impact of international trade on environment been extensively debated. Stiff international trade market becomes a push factor for the firms to engage in race to bottom activity and therefore, firms reallocate their production plant overseas in the form of foreign direct investment (FDI). The reallocation of the production plants of firms into developing countries has causing the environment of the host countries depleting. The environmentalist claimed this scenario as Pollution Haven Hypothesis (PHH). In this study, System Generalized Method of Moments (S-GMM) is employed to address the gap in the literature with the focus on the role of corruption in PHH. With the focus of developing countries during 2002 to 2018, our result finds that PHH valid in a more corrupted country. Countries with higher level of corruption are attracting polluted FDI than less corrupted countries. The present study is imperative as it provides an opportunity to advance knowledge on the significant theoretical insights into the relationships between corruption and PHH in developing countries.

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Section: Resultssupporting

confidence: 93%

Re-assessing Pollution Haven Hypothesis (PHH): corruption, FDI and CO₂ emission

Huay

Li²,

Shah

2022

IOP Conf. Ser.: Earth Environ. Sci.

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“…Interestingly, their results showed that biomass energy mitigated emissions, offering a complex picture of the variables affecting environmental results in the area. Bardi and Hfaiedh (2021) confirmed the existence of the EKC theory. Additionally, their research demonstrated a causal link, indicating that FDI influenced higher emissions and bolstered the Pollution Haven Hypothesis (PHH).…”

Section: Literature Reviewsupporting

confidence: 61%

Renewable Energy Transition, Trade Openness, and CO2 Emissions Nexus in the Middle East

Maalel

2024

IJEEP

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Reducing pollutant emissions during the global energy transition from fossil fuels to renewables is a significant endeavor. Nonetheless, a significant portion of the Middle East (ME) economy continues to be based mostly on the extraction and use of fossil fuels, posing a threat to the environment in the area. Thus, the current study examined the impact of income growth, trade openness (TO), and the Renewable Energy Transition (RET) on CO2 emissions in 12 Middle East nations, from 2000 to 2019. The findings demonstrated that the ME area contains the Environmental Kuznets Curve (EKC). RET decreased emissions of CO2. Therefore, the transition to renewable energy reduced emissions in this ME region. On the other hand, TO enhances CO2 emissions. For the ME region, TO is concerned with the environment. The research recommends a quick RET to safeguard the environment from CO2 emissions.

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“…The authors propose a network of conceptually related constructs that intervene in the process of bribery, i.e., relations under the influence of institutional dysfunction and connection and substantiality through action and culture. Bardi & Hfaiedh (2021) analyzed the impact of FDI and corruption on environmental quality in MENA countries in the period from 1990 to 2016. Their empirical assessments have confirmed the "pollution haven" hypothesis that the industrial activities of developed countries that pollute the environment are shifting to developing countries that have poorer environmental regulations.…”

Section: Overview Of Previous Researchmentioning

confidence: 99%

Corruption Environment and Foreign Direct Investments in Croatia

Peronja

Piplica

Ružić

2022

ZREFIS

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With this research, the authors would like to contribute to the understanding and identification of corruption, which is an important factor that can affect FDI in Croatia. The scientific and pragmatic purpose of this research is to identify an appropriate anti-corruption policy to influence the increase of FDI in Croatia. The research sample includes data for all countries that have FDI in Croatia as well as countries where Croatia has FDI. The authors added indicators on the level of FDI for the level of corruption in Croatia which were statistically processed. The statistical analysis is performed based on a total of 614 different values where the FDI of individual countries is put in relation to Croatia on a yearly basis, and the CPI was measured in those countries in the same year as in Croatia. The main hypothesis is that corruption "as sand" significantly negatively affects foreign direct investment in Croatia. An alternative hypothesis has also been formulated that corruption "as sand" significantly affects Croatia's foreign direct investment in foreign countries. The results showed that in the period from 1999 to 2019 there was no connection between corruption and FDI in Croatia. However, when the connection between corruption and Croatian FDI is observed, such a connection is becoming stronger as the FDI increases. Such a relationship between corruption and Croatia’s FDI can be characterized as "as grease." However, when only seven countries in which Croatia has the most direct investments were considered, a significant positive correlation was found between such investments and measured corruption in those countries, therefore the alternative hypothesis was accepted. The obtained results of the conducted research can provide important knowledge to the creators of Croatian economic policy that the impact of corruption on Croatian FDI abroad "as grease" in the future may be a very limiting factor to an increase in investments when the level of corruption in these countries decreases, which already applies to countries where corruption is shown to be at a low level.

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Causal Interaction between FDI, Corruption and Environmental Quality in the MENA Region

Cited by 16 publications

References 40 publications

Re-assessing Pollution Haven Hypothesis (PHH): corruption, FDI and CO₂ emission

Re-assessing Pollution Haven Hypothesis (PHH): corruption, FDI and CO₂ emission

Renewable Energy Transition, Trade Openness, and CO2 Emissions Nexus in the Middle East

Corruption Environment and Foreign Direct Investments in Croatia

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Causal Interaction between FDI, Corruption and Environmental Quality in the MENA Region

Cited by 16 publications

References 40 publications

Re-assessing Pollution Haven Hypothesis (PHH): corruption, FDI and CO2 emission

Re-assessing Pollution Haven Hypothesis (PHH): corruption, FDI and CO2 emission

Renewable Energy Transition, Trade Openness, and CO2 Emissions Nexus in the Middle East

Corruption Environment and Foreign Direct Investments in Croatia

Contact Info

Product

Resources

About

Re-assessing Pollution Haven Hypothesis (PHH): corruption, FDI and CO₂ emission

Re-assessing Pollution Haven Hypothesis (PHH): corruption, FDI and CO₂ emission