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Foreign Direct Investment and Environmental Degradation Further Evidence from Brazil and Singapore

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Listed:
  • Ioannis KOSTAKIS

    () (Department of Home Economic and Ecology Harokopio University Athens Greece)

  • Sarantis LOLOS

    () (Department of Economic and Regional Development Panteion University Athens Greece)

  • Eleni SARDIANOU

    () (Department of Home Economics and Ecology Harokopio University Athens Greece)

Abstract

This paper assesses empirically the role of foreign direct investment FDI inflows on environmental quality measured by CO2 emissions The cases of Brazil and Singapore are taken as examples for our empirical investigation on the grounds of their specific similarities and differences The empirical analysis is carried out in a multivariate setting using a variety of models ARDL FMOLS and OLS for the early 1970s to 2010 The results indicate that FDI inflows have lead to environmental degradation in Brazil but not in Singapore Our findings point to the importance of the sectorial composition of FDI as a determinant of its impact on environmental quality The analysis is supplemented with an environmental Kuznets curve EKC our results showing that the EKC hypothesis holds for the case of Singapore but its validity is marginal in Brazil

Suggested Citation

  • Ioannis KOSTAKIS & Sarantis LOLOS & Eleni SARDIANOU, 2017. "Foreign Direct Investment and Environmental Degradation Further Evidence from Brazil and Singapore," Journal of Advanced Research in Management, ASERS Publishing, vol. 8(1), pages 45-59.
  • Handle: RePEc:srs:jemt00:v:8:y:2017:i:1:p:45-59
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    References listed on IDEAS

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    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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