IDEAS home Printed from
   My bibliography  Save this article

Foreign direct investment and air pollution in Asian countries: does institutional quality matter?


  • Cong Minh Huynh
  • Hong Hiep Hoang


This paper empirically studies how foreign direct investment (FDI) affects air pollution, and how this effect depends on institutional quality. By using a panel data for 19 developing Asian countries over the period of 2002–2015, we find that FDI inflows initially increase air pollution in Asia, and the institutional quality improvement helps reduce this effect until the institutional quality achieves a threshold, then beyond this threshold, FDI reduces air pollution. The findings indicate that the pollution haven hypothesis and the pollution halo hypothesis are not contradictory when the institutional quality is taken into consideration.

Suggested Citation

  • Cong Minh Huynh & Hong Hiep Hoang, 2019. "Foreign direct investment and air pollution in Asian countries: does institutional quality matter?," Applied Economics Letters, Taylor & Francis Journals, vol. 26(17), pages 1388-1392, October.
  • Handle: RePEc:taf:apeclt:v:26:y:2019:i:17:p:1388-1392
    DOI: 10.1080/13504851.2018.1563668

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.


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

    Cited by:

    1. Cong Minh Huynh, 2020. "Shadow economy and air pollution in developing Asia: what is the role of fiscal policy?," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 22(3), pages 357-381, July.

    More about this item


    Access and download statistics


    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:taf:apeclt:v:26:y:2019:i:17:p:1388-1392. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.