IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2018-05-18.html
   My bibliography  Save this article

The Relationship between Foreign Direct Investment, Economic Growth and Environmental Pollution in Vietnam: An Autoregressive Distributed Lags Approach

Author

Listed:
  • Nguyen Duy Phuong

    (University of Labour and Social Affairs, Ha Noi campus, Vietnam)

  • Le Thi Minh Tuyen

    (University of Economics Ho Chi Minh city, Ho Chi Minh city, Vietnam.)

Abstract

The nexus between economic growth, environmental pollution, and foreign direct investment (FDI) inflows has been intensively analyzed by a number of studies, but the empirical evidence more often than not remains controversial and ambiguous. This paper investigates the causal relationship between CO2 emissions, FDI and economic growth for Vietnam over the period 1986 2015. The empirical results provide a strong statistical evidence that overall there is the relationship, which has inverse U-shape between income per capita and environmental degradation in Vietnam. The turning point s GDP per capita is about 3,145 US Dollar/year. This study suggests that policy-makers should control the environmental standards in the projects to improve environmental pollution and has attracted FDI of stability to achieve sustainable economic development for the long-run.

Suggested Citation

  • Nguyen Duy Phuong & Le Thi Minh Tuyen, 2018. "The Relationship between Foreign Direct Investment, Economic Growth and Environmental Pollution in Vietnam: An Autoregressive Distributed Lags Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 8(5), pages 138-145.
    • Handle: RePEc:eco:journ2:2018-05-18
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/6794/3935
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/6794/3935
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ali Acaravci & Ilhan Ozturk, 2012. "Electricity Consumption and Economic Growth Nexus: A Multivariate Analysis for Turkey," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 14(31), pages 246-257, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vo, Duc, 2019. "The Impact of Foreign Direct Investment on Environment Degradation: Evidence from Emerging Markets in Asia," MPRA Paper 103292, University Library of Munich, Germany.
    2. Wilman-Santiago Ochoa-Moreno & Byron Alejandro Quito & Carlos Andrés Moreno-Hurtado, 2021. "Foreign Direct Investment and Environmental Quality: Revisiting the EKC in Latin American Countries," Sustainability, MDPI, vol. 13(22), pages 1-18, November.
    3. Anh Hoang To & Dao Thi-Thieu Ha & Ha Minh Nguyen & Duc Hong Vo, 2019. "The Impact of Foreign Direct Investment on Environment Degradation: Evidence from Emerging Markets in Asia," IJERPH, MDPI, vol. 16(9), pages 1-24, May.
    4. Ngo Ngoc Minh, 2020. "Foreign Direct Investment and Carbon Dioxide Emissions: Evidence from Capital of Vietnam," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 76-83.
    5. Jamiu Adetola Odugbesan & Husam Rjoub, 2020. "Relationship Among Economic Growth, Energy Consumption, CO2 Emission, and Urbanization: Evidence From MINT Countries," SAGE Open, , vol. 10(2), pages 21582440209, April.
    6. Le Hoang Phong & Dang Thi Bach Van & Ho Hoang Gia Bao, 2018. "The Role of Globalization on CO2 Emission in Vietnam Incorporating Industrialization, Urbanization, GDP per Capita and Energy Use," International Journal of Energy Economics and Policy, Econjournals, vol. 8(6), pages 275-283.
    7. Magazzino, Cosimo & Mele, Marco, 2022. "Can a change in FDI accelerate GDP growth? Time-series and ANNs evidence on Malta," The Journal of Economic Asymmetries, Elsevier, vol. 25(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tan Lee Pei & Mohd Shahidan Shaari & Tunku Salha Tunku Ahmad, 2016. "The Effects of Electricity Consumption on Agriculture, Service and Manufacturing Sectors in Malaysia," International Journal of Energy Economics and Policy, Econjournals, vol. 6(3), pages 401-407.
    2. Dakpogan, Arnaud & Smit, Eon, 2018. "The effect of electricity losses on GDP in Benin," MPRA Paper 89545, University Library of Munich, Germany.
    3. Nabil Ahmed Mareai Senan & Haider Mahmood & Sehrish Liaquat, 2018. "Financial Markets and Electricity Consumption Nexus in Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 8(1), pages 12-16.
    4. Chibueze, E. Nnaji & Jude, O. Chukwu & Nnaji Moses, 2013. "Electricity Supply, Fossil fuel Consumption, Co2 Emissions and Economic Growth: Implications and Policy Options for Sustainable Development in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 3(3), pages 262-271.
    5. Shahateet, Mohammed Issa & Al-Majali, Khalid Ali & Al-Hahabashneh, Fedel, 2014. "Causality and Cointegration between Economic Growth and Energy Consumption: Econometric Evidence from Jordan," MPRA Paper 59067, University Library of Munich, Germany, revised Oct 2014.
    6. Pham Dinh Long & Bui Hoang Ngoc & Duong Tien Ha My, 2018. "The Relationship between Foreign Direct Investment, Electricity Consumption and Economic Growth in Vietnam," International Journal of Energy Economics and Policy, Econjournals, vol. 8(3), pages 267-274.
    7. P. Srinivasan & Inder Siddanth Ravindra, 2015. "Causality among Energy Consumption, CO2 Emission, Economic Growth and Trade," Foreign Trade Review, , vol. 50(3), pages 168-189, August.
    8. Mustafa SAATC & Yasemin DUMRUL, 2013. "The Relationship Between Energy Consumption and Economic Growth: Evidence From A Structural Break Analysis For Turkey," International Journal of Energy Economics and Policy, Econjournals, vol. 3(1), pages 20-29.
    9. Magdalena Ziolo & Iwona Bak & Anna Spoz & Beata Zofia Filipiak & Jaroslaw Kozuba & Piotr Niedzielski, 2020. "A Sustainable Approach for Financial and Energy Markets: The Perspective of OECD European Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 462-487.
    10. Alexander D. Burian, 2015. "Problém Zabezpečenia Svetového Systému Medzinárodných Vzťahov Na Európskom Kontinente V Kontexte Premeny Svetového Systému Medzinárodných Vzťahov Z Jednopolárneho Na Mnohopolárny (On Securing A World ," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 13(4), pages 303-312.
    11. Mounir Dahmani & Mohamed Mabrouki & Adel Ben Youssef, 2021. "The ICT, Financial Development, Energy Consumption and Economic Growth Nexus in MENA Countries: Panel CS-ARDL Evidence," GREDEG Working Papers 2021-46, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    12. Lucas B. Garcia & Fabiana Alves Fiore & Fernando L. C. Carvalho, 2023. "Factors Associated with the Use of Solar Energy in Urban Households - Case Study: Municipality of S o Jos Dos Campos," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 522-530, July.
    13. Pavlos Stamatiou, 2023. "Μοdeling Environmental Degradation: The Effects of Electricity Consumption, Economic Growth and Globalization," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 62-72, September.
    14. masudi, Patrick, 2014. "Consommation d’énergie électrique et performance économique dans la zone SADC : une analyse empirique [Electricity consumption and economic performance in the SADC region : an empirical analysis]," MPRA Paper 63492, University Library of Munich, Germany, revised 2013.
    15. Rashid Sbia & Muhammad Shahbaz & Ilhan Ozturk, 2017. "Economic growth, financial development, urbanisation and electricity consumption nexus in UAE," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 30(1), pages 527-549, January.
    16. A. znur mit & Elif Bulut, 2015. "Relationship between Energy Consumption and Real Gross Domestic Production in Turkey: A Co-integration Analysis with Structural Breaks," International Journal of Energy Economics and Policy, Econjournals, vol. 5(4), pages 968-978.
    17. Saleheen, Khan & Farooq Ahmed, Jam & Muhammad, Shahbaz, 2012. "Electricity Consumption and Economic Growth in Kazakhstan: Fresh Evidence from a Multivariate Framework Analysis," MPRA Paper 43460, University Library of Munich, Germany, revised 20 Dec 2012.
    18. Ali Acaravci & Sinan Erdogan & Guray Akalin, 2015. "The Electricity Consumption, Real Income, Trade Openness and Foreign Direct Investment: The Empirical Evidence from Turkey," International Journal of Energy Economics and Policy, Econjournals, vol. 5(4), pages 1050-1057.
    19. Magdalena Ziolo & Iwona Bak & Anna Spoz & Beata Zofia Filipiak & Jaroslaw Kozuba & Piotr Niedzielski, 2020. "Financial and Energy Markets - A Sustainable Approach. Perspective of European Countries Belonging to the OECD," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 491-511.
    20. Muhammad Shahbaz & Ilhan Ozturk & Amjad Ali, 2015. "Electricity Consumption and Economic Growth Causality Revisited: Evidence from Turkey," Bulletin of Energy Economics (BEE), The Economics and Social Development Organization (TESDO), vol. 3(4), pages 176-193, December.

    More about this item

    Keywords

    FDI; CO 2 emissions; economic growth; Vietnam.;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2018-05-18. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.