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Environment, growth, and FDI revisited

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  • Neequaye, Nii Amon
  • Oladi, Reza

Abstract

This paper examines the effects of foreign direct investment inflows and environmental aid disbursements on environmental degradation using panel data for some selected developing countries. Using a fixed effects model, our estimates suggest the existence of an environmental Kuznets curve for carbon dioxide as well as total green house gas emissions from the energy and industrial sectors but there was no evidence of this phenomenon for nitrous oxide and total green house gas emissions from the waste sector. We also find a hint of a technique effect, and investigate it further by exploring the responsiveness of capital and labor to investment inflows in the respective developing countries.

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  • Neequaye, Nii Amon & Oladi, Reza, 2015. "Environment, growth, and FDI revisited," International Review of Economics & Finance, Elsevier, vol. 39(C), pages 47-56.
    • Handle: RePEc:eee:reveco:v:39:y:2015:i:c:p:47-56
    DOI: 10.1016/j.iref.2015.06.002
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    More about this item

    Keywords

    Pollution haven hypothesis; FDI; Environmental Kuznets curve; Environmental aid;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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