IDEAS home Printed from https://ideas.repec.org/p/erg/wpaper/1608.html
   My bibliography  Save this paper

Do human capital and governance thresholds matter for the environmental impact of fdi? The evidence from mena countries

Author

Listed:
  • Fatma Tasdemir

    (Sinop University)

  • Seda Ekmen Özçelik

    (Ankara Yildirim Beyazit University)

Abstract

This paper investigates whether the impact of foreign direct investment (FDI) on CO2 emissions may change depending on the data-driven estimated threshold levels for the country characteristics (CC) including human capital and governance in a panel of 13 Middle East and North Africa (MENA) economies over the 1996-2019 period. Our results strongly suggest that endogenously estimated CC thresholds matter for the environmental impact of FDI inflows. The pollution haven hypothesis which maintains that FDI inflows lead to pollution, appears to be valid for economies with weak CC. On the other hand, the pollution halo argument suggesting FDI lowers the emissions appears to be hold in countries with strong CC. The empirical findings in this study suggest that policies aiming to improve human capital and governance may be expected not only to increase the economic benefits of FDI in terms of growth but also mitigate the negative environmental impacts of FDI in the MENA region.

Suggested Citation

  • Fatma Tasdemir & Seda Ekmen Özçelik, 2022. "Do human capital and governance thresholds matter for the environmental impact of fdi? The evidence from mena countries," Working Papers 1608, Economic Research Forum, revised 20 Nov 2022.
    • Handle: RePEc:erg:wpaper:1608
    as

    Download full text from publisher

    File URL: https://erf.org.eg/publications/do-human-capital-and-governance-thresholds-matter-for-the-environmental-impact-of-fdi-the-evidence-from-mena-countries-2/
    Download Restriction: no
    File URL: https://bit.ly/3P2XxD8
    Download Restriction: no
    ---><---

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:erg:wpaper:1608. 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.

    We have no bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sherine Ghoneim (email available below). General contact details of provider: https://edirc.repec.org/data/erfaceg.html .

    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.