Does pollution haven hypothesis hold in newly industrialized countries? Evidence from ecological footprint

Abstract

This study aims to investigate the validity of pollution haven hypothesis for the period from 1982 to 2013 in ten newly industrialized countries. For this purpose, we examine the relationship between real income, foreign direct investment, energy consumption and ecological footprint using with second generation panel data methodology to take into account the cross-sectional dependence among newly industrialized countries. In doing so, the possible non-linear relationship between foreign direct investment and environmental degradation is also searched. The results show that increased energy consumption and economic growth leads to increase in ecological footprint. Moreover, the U-shaped relationship between foreign direct investment and ecological footprint is confirmed in newly industrialized countries.

Do Higher Education Research and Development Expenditures affect Environmental Sustainability? New Evidence from Thirty-One Chinese Provinces

“…This result suggested that some cities, provinces, and municipalities in China, with less stringent regulations, have become pollution havens in an attempt to attract FDI and pollution-intensive industries. This result validated the previous studies conducted for China (Ur Rahman et al, 2019); OECD (Manzoor Ahmad et al, 2020); newly industrialized nations (Destek & Okumus, 2019); Cote d'Ivoire (Assamoi et al, 2020); ASEAN (Guzel & Okumus, 2020);…”

“…That said, the empirical evidence on the FDI-CO2e nexus remains controversial. Some evidence for the positive relationship between FDI and CO 2 e include studies for newly industrialized economies (Destek & Okumus, 2019); Cote d'Ivoire (Assamoi, Wang, Liu, & Gnangoin, 2020); ASEAN countries (Guzel & Okumus, 2020); MINT countries (Balsalobre-Lorente, Gokmenoglu, Taspinar, & Cantos-Cantos, 2019); Turkey (Mert & Caglar, 2020); MIKTA economies (Bakirtas & Cetin, 2017); Pakistan (Ur Rahman et al, 2019); Asia (M. A. Khan & Ozturk, 2020); European economies (Mert, Bölük, & Çağlar, 2019); BRI region (A.…”

Do higher education research and development expenditures affect environmental sustainability? New evidence from Chinese provinces

“…This result suggested that some cities, provinces, and municipalities in China, with less stringent regulations, have become pollution havens in an attempt to attract FDI and pollution-intensive industries. This result validated the previous studies conducted for China (Ur Rahman et al 2019 ); OECD (Manzoor Ahmad et al 2020 ); newly industrialized nations (Destek and Okumus 2019 ); Cote d’Ivoire (Assamoi et al 2020 ); ASEAN (Guzel and Okumus 2020 ); MINT countries (Balsalobre-Lorente et al 2019 ); Pakistan (Nadeem et al 2020 ; Naz et al 2019 ); MIKTA economies (Bakirtas and Cetin 2017 ); BRICS (Khan et al 2020 ); Arab countries (Abdo et al 2020 ); Asian countries (Khan and Ozturk 2020 ); and European countries (Mert et al 2019 ). However, this result contradicts the previous studies conducted for coastal Mediterranean countries (S. Nathaniel et al 2020 ); OECD (Ahmad et al 2019a ); Turkey (Mert and Caglar 2020 ); China (Ayamba et al 2019 ; Hao et al 2020 ); and Kyoto Annex countries (Mert and Bölük 2016 ).…”

“…That said, the empirical evidence on the FDI-CO 2 e nexus remains controversial. Some proof of the positive relationship between FDI and CO 2 e include the newly industrialized economies (Destek and Okumus 2019 ); Cote d’Ivoire (Assamoi et al 2020 ); ASEAN countries (Guzel and Okumus 2020 ); China (Ahmad et al 2021c ); MINT countries (Balsalobre-Lorente et al 2019 ); Turkey (Mert and Caglar 2020 ); MIKTA economies (Bakirtas and Cetin 2017 ); Pakistan (Ur Rahman et al 2019 ); Asia (Khan and Ozturk 2020 ); European economies (Mert et al 2019 ); BRI region (Khan et al 2019a ); OIC countries (S. Ali et al 2020 ); OECD countries (Ahmad et al 2020 ); and coastal Mediterranean countries (Nathaniel 2020 ). Table 2 depicts the summary of the selected studies on the nexus between FDI and CO 2 e.…”

Foreign Direct Investments, Renewable Electricity Output, and Ecological Footprints: Do Financial Globalization Facilitate Renewable Energy Transition and Environmental Welfare in Bangladesh?

“…In line with the findings, the authors claimed that although FDI inflows initially degrade environmental quality, the effects get reversed beyond a certain level of FDI inflows. Conversely, Destek and Okumus (2019) asserted that at lower levels of FDI inflows the ecological footprints in 10 newly industrialized economies tend to decline; but the impact does not sustain at higher degrees of FDI inflows. Moreover, using CO 2 emissions, carbon footprints, and ecological footprints as indicators of environmental pollution, Solarin and Al-Mulali (2018) found evidence of higher FDI inflows contributing to greater environmental pollution in developed economies, but not in the context of developing economies.…”