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FDI Inflows and Environment in India

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  • Maria Khan

Abstract

This paper tries to find out whether there has been greater inflow of FDI in high pollution intensive manufacturing industries in India as compared to less pollution intensive industries. To analyze the impact of FDI inflow on the environment we have taken sectoral data on FDI inflows in the manufacturing sector from 1996 to 2013. Pollution data was regressed on FDI data to find out both long term and short term affect of FDI inflows on environment. Regression results of both long term and short term model showed that FDI inflows has positive impact on industrial pollution levels in India.

Suggested Citation

  • Maria Khan, 2018. "FDI Inflows and Environment in India," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(3), pages 138-145, September.
    • Handle: RePEc:khe:scajes:v:4:y:2018:i:3:p:138-145
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    References listed on IDEAS

    as
    1. Rashmi Rastogi & Aparna Sawhney, "undated". "What Attracts FDI in Indian Manufacturing Industries?," Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi Discussion Papers 13-02, Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India.
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    More about this item

    Keywords

    FDI; liberalization; environment; pollution haven hypothesis;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • 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

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