Does Foreign Direct Investment Harm the Environment in Developing Countries? Dynamic Panel Analysis of Latin American Countries

Baek, Jungho

doi:10.3390/economies5040039

Cited by 31 publications

(23 citation statements)

References 34 publications

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“…For example, a 1% increase in energy consumption increases CO 2 emissions by approximately 0.973% (0.619%) in the long (short)-run, holding income fixed. This further suggests that as found in previous studies (e.g., Iwata et al 2011;Baek and Choi 2017), energy consumption is one of main determinants in determining CO 2 emissions in Kazakhstan and should be accounted for when estimating the income-environment nexus accurately.…”

Section: The Resultssupporting

confidence: 67%

The Environmental Consequences of Growth: Empirical Evidence from the Republic of Kazakhstan

Akbota

Baek

2018

Economies

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The main objective of this paper is to examine the effect growth has on CO 2 emissions in Kazakhstan, controlling for energy consumption, in the autoregressive distributed lag (ARDL) cointegration framework. We find that the environmental Kuznets curve (EKC) hypothesis seems to hold for Kazakhstan; this effect at a low level of income increases CO 2 but at a high level decreases it. We also find that energy consumption increases CO 2 emissions.

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Section: The Resultssupporting

confidence: 67%

The Environmental Consequences of Growth: Empirical Evidence from the Republic of Kazakhstan

Akbota

Baek

2018

Economies

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“…The findings of the study revealed the validity of PHH and environmental Kuznets curve (EKC) not only for the full sample but also for high-and lowincome countries. Baek and Choi (2017) found that FDI increases CO2 emissions and confirmed the validity of PHH in 17 Latin American economies for the time period of 1971-2011. The research divided the sample into low-, middle-and high-income countries but the positive impact of FDI on CO2 emissions was only confirmed in high-income countries.…”

Section: Review Of Literaturesupporting

confidence: 62%

Modelling the Nexus in Foreign Capital Flows and Environmental Degradation: Fresh Evidence From Global Data

Khan

Raza

2021

Preprint

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Environmental degradation, if not controlled, is one of the dangers faced by humankind. Achieving sustainable development is impossible without improving environmental quality. The 17 United Nations Sustainable Development Goals are intended to lead to improvements toward a sustainable future. We explore empirically the interrelationship between foreign capital flows/foreign direct investment (FDI) and environmental quality measured by carbon dioxide (CO2) emissions for a panel of 125 countries in 1990–2018 by revisiting the pollution haven hypothesis (PHH). This study employed a system generalised method of moments (GMM). The GMM estimates show that FDI has a significantly positive link with CO2 in Asia and Africa, but the links between these two variables are insignificant in the Latin American, Caribbean and European regions. In the cases of full sample and developing countries, a significantly positive relationship is found between FDI and CO2. In the case of income-based samples, results reveal that FDI is the cause of environmental degradation in low-income, lower middle-income and upper middle-income countries. We contribute to the available literature by re-examining the PHH and presenting the impact of inward FDI on CO2, where the results demonstrate that the PHH is valid in full-sample, regional and income-wise countries. These findings suggest that developing countries should adopt environmentally friendly policies to attract foreign investors by setting strict regulations on environmental pollution control to achieve sustainable development goals (SDGs).

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“…Study on the relationship between per capita income and environmental degradation has been undertaken by many researchers (Baek & Choi, 2017;Dinda, 2004;Sehar & Khan, 2013;Shahbaz, Dube, Ozturk, & Jalil, 2015) who modeled through the Kuznets Environment Curve hypothesis (EKC) which was first introduced by Grossman & Krueger (1991) on the study of potential impact of NAFTA. According to the Environmental Kuznets Curve hypothesis in the early stages of economic growth, environmental degradation and pollution are increasing but at certain per capita income levels the trend is reversing.…”

Section: Introductionmentioning

confidence: 99%

Does Education Reduce CO2 Emmisions? Empirical Evidence of The Environmental Kuznets Curve in Indonesia

Umaroh¹

2019

J. Rev. Global Econ.

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The purpose of this study is to analyze whether education has a role in energy use in society using the Environmental Kuznets Curve (EKC) hypothesis during the period 1972-2016 in Indonesia. The paper applied the Autoregressive Distrubuted Lag (ARDL) Bound Test approach to identify co-integration relationships among variables in the model. The results confirmed the evidence that education initially increased CO2 emmisions and at some point education reduced co2 in the short run but not in the long run. In addition, i also found conclusive evidence to support the Inverted U-shaped EKC hypothesis of the relationship between GDP per capita and environmental degradation. The stability test has conducted in estimated model and the result indicated that estimated model is stable over time.

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Does Foreign Direct Investment Harm the Environment in Developing Countries? Dynamic Panel Analysis of Latin American Countries

Cited by 31 publications

References 34 publications

The Environmental Consequences of Growth: Empirical Evidence from the Republic of Kazakhstan

The Environmental Consequences of Growth: Empirical Evidence from the Republic of Kazakhstan

Modelling the Nexus in Foreign Capital Flows and Environmental Degradation: Fresh Evidence From Global Data

Does Education Reduce CO2 Emmisions? Empirical Evidence of The Environmental Kuznets Curve in Indonesia

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