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FDI, Growth and CO2 Emissions Relationship: Evidence from High, Middle and Low Income Countries

Author

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  • Muhammad Shahbaz

    (COMSATS Institute of Information Technology, Lahore, Pakistan.)

  • Samia Nasreen

    (Government College Women University Faisalabad, Pakistan.)

  • Ilhan Ozturk

    (Faculty of Economics and Administrative Sciences, Mersin, Turkey.)

Abstract

The present study aims to investigate the causal relationship between foreign direct investments, economic growth and CO2 emissions using data of 117 countries over the period of 1985-2010. Our results showed that relationship between these variables change from country to country. In regional analysis, feedback effect exists between foreign direct investment and CO2 emissions and, the same is true for economic growth and CO2 emissions. The results are different on a country and regional level. These dissimilarities may due to the level of development, energy per capita use, amount of FDI, types energy sources used, population growth and etc.

Suggested Citation

  • Muhammad Shahbaz & Samia Nasreen & Ilhan Ozturk, 2016. "FDI, Growth and CO2 Emissions Relationship: Evidence from High, Middle and Low Income Countries," Bulletin of Energy Economics (BEE), The Economics and Social Development Organization (TESDO), vol. 4(1), pages 54-69, March.
    • Handle: RePEc:ijr:beejor:v:4:y:2016:i:1:p:54-69
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    References listed on IDEAS

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    2. Moutinho, Victor & Madaleno, Mara & Inglesi-Lotz, Roula & Dogan, Eyup, 2018. "Factors affecting CO2 emissions in top countries on renewable energies: A LMDI decomposition application," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 605-622.
    3. Ojonugwa Usman & Paul Terhemba Iorember & Ilhan Ozturk & Festus Victor Bekun, 2022. "Examining the Interaction Effect of Control of Corruption and Income Level on Environmental Quality in Africa," Sustainability, MDPI, vol. 14(18), pages 1-15, September.

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    More about this item

    Keywords

    FDI; Growth; Emissions;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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