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Environmental consequences of economic growth and foreign direct investment: evidence from panel data analysis

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  • Muhammad, Shahbaz
  • Samia, Nasreen
  • Talat, Afza

Abstract

This paper is aimed at investigating non-linear relationship between foreign direct investment and environmental degradation using panel data of 110 developed and developing economies. The results indicated that environmental Kuznets curve exists and foreign direct investment increases environmental degradation.

Suggested Citation

  • Muhammad, Shahbaz & Samia, Nasreen & Talat, Afza, 2011. "Environmental consequences of economic growth and foreign direct investment: evidence from panel data analysis," MPRA Paper 32547, University Library of Munich, Germany, revised 03 Aug 2011.
  • Handle: RePEc:pra:mprapa:32547
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    References listed on IDEAS

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    Cited by:

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    3. Liobikienė, Genovaitė & Butkus, Mindaugas, 2019. "Scale, composition, and technique effects through which the economic growth, foreign direct investment, urbanization, and trade affect greenhouse gas emissions," Renewable Energy, Elsevier, vol. 132(C), pages 1310-1322.
    4. bouchoucha, najeh, 2021. "Does institutional quality mitigate the effect of Foreign Direct Investment on environmental quality: Evidence of MENA countries," MPRA Paper 110005, University Library of Munich, Germany.
    5. Oktay KIZILKAYA, 2017. "The Impact of Economic Growth and Foreign Direct Investment on CO2 Emissions: The Case of Turkey," Turkish Economic Review, KSP Journals, vol. 4(1), pages 106-118, March.
    6. Shahbaz, Muhammad & Nasreen, Samia & Abbas, Faisal & Anis, Omri, 2015. "Does foreign direct investment impede environmental quality in high-, middle-, and low-income countries?," Energy Economics, Elsevier, vol. 51(C), pages 275-287.
    7. Azam Ghezelbash & Vahid Khaligh & Seyed Hamed Fahimifard & J. Jay Liu, 2023. "A Comparative Perspective of the Effects of CO 2 and Non-CO 2 Greenhouse Gas Emissions on Global Solar, Wind, and Geothermal Energy Investment," Energies, MDPI, vol. 16(7), pages 1-20, March.
    8. Karaaslan, Abdulkerim & Çamkaya, Serhat, 2022. "The relationship between CO2 emissions, economic growth, health expenditure, and renewable and non-renewable energy consumption: Empirical evidence from Turkey," Renewable Energy, Elsevier, vol. 190(C), pages 457-466.
    9. repec:kap:iaecre:v:21:y:2015:i:1:p:105-116 is not listed on IDEAS
    10. Pasquale Pazienza, 2015. "The Environmental Impact of the FDI Inflow in the Transport Sector of OECD Countries and Policy Implications," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 21(1), pages 105-116, March.
    11. Nair, Mahendhiran & Arvin, Mak B. & Pradhan, Rudra P. & Bahmani, Sahar, 2021. "Is higher economic growth possible through better institutional quality and a lower carbon footprint? Evidence from developing countries," Renewable Energy, Elsevier, vol. 167(C), pages 132-145.
    12. Pasquale Pazienza & Caterina Lucia, 2020. "How does FDI in the “agricultural and fishing” sector affect methane emission? Evidence from the OECD countries," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(2), pages 441-462, July.

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    More about this item

    Keywords

    Economic Growth; FDI; Environment;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business

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