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Assessment of Impacts of Inward and Outward FDIs on Environmental Protection in Vietnam

Author

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  • Phung Thanh Quang

    (School of Banking and Finance, National Economics University, Hanoi, Vietnam)

Abstract

Considering two theories of Halo and Haven and annual data from 1994 to 2021 for the country of Vietnam, this paper has tried to consider two types of foreign direct investment (to Vietnam from abroad and from Vietnam to abroad) to study the impact factor of investment on carbon dioxide emissions in this country. The significant findings reveal that FDI (Foreign Direct Investment), both inward and outward, is an efficient factor in mitigating carbon emissions in the short term in Vietnam. The enhancements in the inward and outward flows of FDI in Vietnam will likely lead to a reduction in carbon emission increase which is in line with the environmental protection policy. In addition, it confirms the Halo pollution hypothesis in Vietnam, meaning that the Vietnamese government can mitigate CO2 emissions by improving FDI flows (both inward and outward).

Suggested Citation

  • Phung Thanh Quang, 2023. "Assessment of Impacts of Inward and Outward FDIs on Environmental Protection in Vietnam," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 25(02), pages 1-18, June.
    • Handle: RePEc:wsi:jeapmx:v:25:y:2023:i:02:n:s1464333223500096
    DOI: 10.1142/S1464333223500096
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    More about this item

    Keywords

    Haven and halo hypotheses; FDI; Vietnam; ARDL; environmental pollution;
    All these keywords.

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

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