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Does foreign capital dependence affect carbon dioxide emissions in less‐developed countries? A cross‐national analysis, 1980–2014

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  • Steven Andrew Mejia

Abstract

Objective I estimate the effect of foreign investment dependence on carbon dioxide emissions in developing countries with methods and data that address the numerous limitations of previous research on the same topic. Methods I use fixed effects panel regression models that account for first‐order autocorrelation with a sample of 109 developing countries from 1980–2014. Results I find that foreign capital dependence is positively associated with carbon dioxide emissions. I also find economic development, total population, urbanization, and export intensity are positively associated with carbon dioxide emissions, while domestic investment is inversely associated with carbon dioxide emissions. Conclusion This analysis provides even stronger empirical support for the ecostructural theory of foreign capital dependence than previous research on the same topic.

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  • Steven Andrew Mejia, 2021. "Does foreign capital dependence affect carbon dioxide emissions in less‐developed countries? A cross‐national analysis, 1980–2014," Social Science Quarterly, Southwestern Social Science Association, vol. 102(4), pages 1982-1993, July.
    • Handle: RePEc:bla:socsci:v:102:y:2021:i:4:p:1982-1993
    DOI: 10.1111/ssqu.13034
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    1. Richard Perkins & Eric Neumayer, 2008. "Fostering Environment Efficiency through Transnational Linkages? Trajectories of CO2 and SO2, 1980–2000," Environment and Planning A, , vol. 40(12), pages 2970-2989, December.
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