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Are FDI Inflows Crucial for Environmental Protection in Various Asian Regions?

Author

Listed:
  • Bui Huy Nhuong

    (National Economics University, Hanoi, Vietnam)

  • Phung Thanh Quang

    (National Economics University, Hanoi, Vietnam)

Abstract

The paper’s main goal is to investigate and contrast the impacts of foreign direct investment (FDI) inflows on environmental protection in various Asian locations. In order to achieve this end, the validity of the Halo/Haven pollution hypothesis is examined using a panel data framework for the annual data of 32 Asian economies over the period of 2000–2019. While the sign of squared Gross Domestic Product (GDP) per capita is not statistically significant for low- and lower-middle-income group of Asian economies, which does not confirm the existence of EKC hypothesis in these countries, the main results showed that the Environmental Kuznets Curve (EKC) hypothesis exists in high- and upper-middle-income group of Asian nations. In the group of Asian nations with high- and upper-medium-incomes, there is the Halo hypothesis; in the group of nations with low- and lower-middle-incomes, there is the Haven pollution hypothesis. Important practical policies recommended by this research include promoting green finance methods, creating digital economic mechanisms, and revising laws and policies that encourage FDI in order to enhance their ability to attract foreign investors in the post-Corona era.

Suggested Citation

  • Bui Huy Nhuong & Phung Thanh Quang, 2022. "Are FDI Inflows Crucial for Environmental Protection in Various Asian Regions?," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 24(02), pages 1-18, June.
    • Handle: RePEc:wsi:jeapmx:v:24:y:2022:i:02:n:s1464333222500284
    DOI: 10.1142/S1464333222500284
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    Citations

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    Cited by:

    1. Zhang, LiXia & Baloch, Zulfiqar Ali & Niu, Guangli, 2023. "Effects of COVID-19 on green bonds, renewable power stocks, and carbon markets: A dynamic spillover analysis," Renewable Energy, Elsevier, vol. 216(C).
    2. Wang, Yunxian & Wang, Xin & Zhang, Zheng & Cui, Zhanmin & Zhang, Yuan, 2023. "Role of fiscal and monetary policies for economic recovery in China," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 51-63.
    3. Jianhe Wang & Mengxing Cui & Lei Chang, 2023. "Evaluating economic recovery by measuring the COVID-19 spillover impact on business practices: evidence from Asian markets intermediaries," Economic Change and Restructuring, Springer, vol. 56(3), pages 1629-1650, June.
    4. Shuang Cai, 2023. "Impact of digitization on green economic recovery: an empirical evidence from China," Economic Change and Restructuring, Springer, vol. 56(5), pages 3139-3161, October.
    5. Xiaodong Huang & Chang Lei, 2023. "Covid-19 impact on financial growth and guidelines for green recovery in BRICS: fresh insights from econometric analysis," Economic Change and Restructuring, Springer, vol. 56(2), pages 1243-1261, April.

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