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Foreign direct investment, pollution and economic growth: evidence from Malaysia

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  • Chew Ging Lee

Abstract

The bounds test developed by Pesaran et al. (2001) is applied to examine the existence of a long-run relationship between foreign direct investment (FDI) inflows, pollution and output of Malaysia. Granger causality tests are also utilized to test for the presence of the short-run and long-run causal relationship between these variables. Both FDI inflows and pollution have short-run causal relationship on output. Output only has long-run causal relationship on FDI inflows.

Suggested Citation

  • Chew Ging Lee, 2009. "Foreign direct investment, pollution and economic growth: evidence from Malaysia," Applied Economics, Taylor & Francis Journals, vol. 41(13), pages 1709-1716.
    • Handle: RePEc:taf:applec:v:41:y:2009:i:13:p:1709-1716
    DOI: 10.1080/00036840701564376
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    References listed on IDEAS

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    1. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
    2. repec:dau:papers:123456789/6159 is not listed on IDEAS
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