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FDI, income, and environmental pollution in Latin America: Replication and extension using panel quantiles regression analysis

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  • Albulescu, Claudiu Tiberiu
  • Tiwari, Aviral Kumar
  • Yoon, Seong-Min
  • Kang, Sang Hoon

Abstract

This paper replicates estimates according to Sapkota and Bastola (2017) and provides additional insights for the relationship between Foreign Direct Investment (FDI), income and environmental pollution in Latin America. To this end, we address the heterogeneity in terms of economic development and environmental pollution, heterogeneity that characterize the retained group of countries. Our panel quantiles regression analysis, conducted for 14 Latin America countries over the period 1980 to 2010, shows that FDI has no clear impact on pollution, while the EKC hypothesis is called into question for the low-income group of countries. While our results partially validate the Environmental Kuznets Curve (EKC) hypothesis, they contrast with those reported by Sapkota and Bastola (2017) for the Pollution Haven Hypothesis (PHH).

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  • Albulescu, Claudiu Tiberiu & Tiwari, Aviral Kumar & Yoon, Seong-Min & Kang, Sang Hoon, 2019. "FDI, income, and environmental pollution in Latin America: Replication and extension using panel quantiles regression analysis," Energy Economics, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:eneeco:v:84:y:2019:i:c:s0140988319302853
    DOI: 10.1016/j.eneco.2019.104504
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    More about this item

    Keywords

    Pollution haven hypothesis; Environmental Kuznets curve hypothesis; FDI; Panel quantiles regression; Latin America; Replication;
    All these keywords.

    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
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment

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