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Foreign Direct Investment, Pollution, and Economic Growth

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  • Takvor H. Mutafoglu

Abstract

The purpose of this study is to investigate the relationships among Foreign Direct Investment (FDI) inflows, Carbon Dioxide (CO 2 ) emissions, and economic growth in terms of Gross Domestic Product (GDP) for Turkey over the period of 1987Q1–2009Q4. The cointegration analyses suggest that there is a stable long-run equilibrium relationship among the variables under consideration and the results of the Granger causality test, produced from the error-correction model (ECM), show that there is a causal relationship between the variables and lends support to the pollution-haven hypothesis. However, there appears to be no evidence of FDI-led growth in the data.

Suggested Citation

  • Takvor H. Mutafoglu, 2012. "Foreign Direct Investment, Pollution, and Economic Growth," Journal of Developing Societies, , vol. 28(3), pages 281-297, September.
    • Handle: RePEc:sae:jodeso:v:28:y:2012:i:3:p:281-297
    DOI: 10.1177/0169796X12453780
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    References listed on IDEAS

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    2. Seng Sothan, 2017. "Causality between foreign direct investment and economic growth for Cambodia," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1277860-127, January.

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