IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/37730.html
   My bibliography  Save this paper

Trade, FDI, growth and biodiversity: an empirical analysis for the main OECD countries

Author

Listed:
  • de santis, roberta

Abstract

Whether the Environmental Kutznets curve relationship holds for biodiversity or not remains an open issue. While there are several studies investigating the EKC relationship for biodiversity, they suffer from some limitations and the empirical evidence is inconclusive. More specifically, with few exceptions, the previous EKC studies for biodiversity looked into the diversity of a particular species or a number of species rather than a broader measure of biodiversity. In addition, these studies do not control for some economic factors that could directly or indirectly affect the biodiversity stock such as trade and foreign direct investments (FDI). International trade, in fact, could influence the biodiversity trough the effects on economic growth, production specialization and technological innovation diffusion. The presence or not of FDI in a country could be of help in assessing the “pollution haven” hypothesis that has obvious feedbacks on biodiversity. The innovative features of this paper are its attempts to estimate a ECK for biodiversity using an overall index of biodiversity terrestrial and marine and the inclusion in the traditional ECK equation of proxies for trade and FDI. According to our estimates for the main OECD countries in the period 1990-2010, the ECK hypothesis is partially verified. Rising incomes are first associated with increasing biodiversity then with decreasing biodiversity and eventually with increasing biodiversity again. This non-monotonic relationship could be explained by the fact that a certain level of income (production) there may be some biodiversity losses that cannot be continuously substituted with environmental-friendly production technology due to ecological threshold and the unique nature of the damage.

Suggested Citation

  • de santis, roberta, 2012. "Trade, FDI, growth and biodiversity: an empirical analysis for the main OECD countries," MPRA Paper 37730, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:37730
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/37730/1/MPRA_paper_37730.pdf
    File Function: original version
    Download Restriction: no
    File URL: https://mpra.ub.uni-muenchen.de/40106/1/MPRA_paper_40106.pdf
    File Function: revised version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stern, David I. & Common, Michael S., 2001. "Is There an Environmental Kuznets Curve for Sulfur?," Journal of Environmental Economics and Management, Elsevier, vol. 41(2), pages 162-178, March.
    2. Suri, Vivek & Chapman, Duane, 1998. "Economic growth, trade and energy: implications for the environmental Kuznets curve," Ecological Economics, Elsevier, vol. 25(2), pages 195-208, May.
    3. Rock, Michael T., 1996. "Pollution intensity of GDP and trade policy: Can the World Bank be wrong?," World Development, Elsevier, vol. 24(3), pages 471-479, March.
    4. Stern , David I., 1998. "Progress on the environmental Kuznets curve?," Environment and Development Economics, Cambridge University Press, vol. 3(2), pages 173-196, May.
    5. Susmita Dasgupta & Benoit Laplante & Hua Wang & David Wheeler, 2002. "Confronting the Environmental Kuznets Curve," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 147-168, Winter.
    6. Jie He, 2007. "Is the Environmental Kuznets Curve hypothesis valid for developing countries? A survey," Cahiers de recherche 07-03, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    7. Panayotou T., 1993. "Empirical tests and policy analysis of environmental degradation at different stages of economic development," ILO Working Papers 992927783402676, International Labour Organization.
    8. John Asafu‐Adjaye, 2003. "Biodiversity Loss and Economic Growth: A Cross‐Country Analysis," Contemporary Economic Policy, Western Economic Association International, vol. 21(2), pages 173-185, April.
    9. A Omer & U Pascual & N Russell, 2003. "Agricultural Intensification and Biodiversity Loss: Is There and Agri-EKC?," Economics Discussion Paper Series 0317, Economics, The University of Manchester.
    10. Pallab Majumder & Robert P. Berrens & Alok K. Bohara, 2006. "Is there an environmental kuznets curve for the risk of biodiversity loss?," Journal of Developing Areas, Tennessee State University, College of Business, vol. 39(2), pages 175-190, January-M.
    11. Roberta De Santis, 2012. "Impact of Environmental Regulations on Trade in the Main EU Countries: Conflict or Synergy?," The World Economy, Wiley Blackwell, vol. 35(7), pages 799-815, July.
    12. Grossman, Gene M. & Krueger, Alan B., 1996. "The inverted-U: what does it mean?," Environment and Development Economics, Cambridge University Press, vol. 1(1), pages 119-122, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. KARGI, Bilal, 2014. "Portfolio in Turkish Economy, and A Long Termed Relation Between Foreign Direct Investments and The Growth, and The Structural Breakage Analysis (1980-2012)," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 6(1), pages 70-81.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Roberta DE SANTIS, 2012. "The Impact Of Growth On Biodiversity: An Empirical Assessment," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 7(3(21)/ Fa), pages 283-290.
    2. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
    3. Luzzati, T. & Orsini, M., 2009. "Investigating the energy-environmental Kuznets curve," Energy, Elsevier, vol. 34(3), pages 291-300.
    4. Stern, David I., 2014. "The Environmental Kuznets Curve: A Primer," Working Papers 249424, Australian National University, Centre for Climate Economics & Policy.
    5. Stern, David I., 2002. "Explaining changes in global sulfur emissions: an econometric decomposition approach," Ecological Economics, Elsevier, vol. 42(1-2), pages 201-220, August.
    6. Stern, David I., 2004. "The Rise and Fall of the Environmental Kuznets Curve," World Development, Elsevier, vol. 32(8), pages 1419-1439, August.
    7. David I. Stern, 2017. "The environmental Kuznets curve after 25 years," Journal of Bioeconomics, Springer, vol. 19(1), pages 7-28, April.
    8. Ciriaci, Daria & Palma, Daniela, 2010. "Geography, environmental efficiency and Italian economic growth: a spatially-adapted Environmental Kuznets Curve," MPRA Paper 22899, University Library of Munich, Germany.
    9. Alexandra-Anca Purcel, 2020. "New insights into the environmental Kuznets curve hypothesis in developing and transition economies: a literature survey," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 22(4), pages 585-631, October.
    10. Halkos, George & Paizanos, Epameinondas, 2015. "Environmental Macroeconomics: A critical literature review and future empirical research directions," MPRA Paper 67432, University Library of Munich, Germany.
    11. George HALKOS, 2012. "Environmental Pollution And Economic Development:Explaining The Existence Of An Environmental Kuznets Curve," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 6(6(18)/ Su), pages 148-159.
    12. Halkos, George, 2011. "Environment and economic development: determinants of an EKC hypothesis," MPRA Paper 33262, University Library of Munich, Germany.
    13. Ariane Amin & Johanna Choumert, 2015. "Development and biodiversity conservation in Sub-Saharan Africa: A spatial analysis," Economics Bulletin, AccessEcon, vol. 35(1), pages 729-744.
    14. Sabuj Kumar Mandal & Devleena Chakravarty, 2017. "Role of energy in estimating turning point of Environmental Kuznets Curve: an econometric analysis of the existing studies," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 19(2), pages 387-401, October.
    15. Atwi, Majed & Barberán, Ramón & Mur, Jesús & Angulo, Ana, 2018. "CO2 Kuznets Curve Revisited: From Cross-Sections to Panel Data Models," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 40, pages 169-196.
    16. Aslanidis, Nektarios, 2009. "Environmental Kuznets Curves for Carbon Emissions: A Critical Survey," Working Papers 2072/15847, Universitat Rovira i Virgili, Department of Economics.
    17. Zilio, Mariana & Recalde, Marina, 2011. "GDP and environment pressure: The role of energy in Latin America and the Caribbean," Energy Policy, Elsevier, vol. 39(12), pages 7941-7949.
    18. Ariane Manuela Amin, 2012. "What Drives Biodiversity Conservation Effort in the Developing World? An analysis for Sub-Saharan Africa," CERDI Working papers halshs-00722081, HAL.
    19. DIAZ-VAZQUEZ, M. Rosario, 2009. "The Dissociation Between Emissions And Economic Growth: The Role Of Shocks Exogenous To The Environmental Kuznets Curve Model," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 9(2).
    20. Marzio Galeotti & Matteo Manera & Alessandro Lanza, 2006. "On the Robustness of Robustness Checks of the Environmental Kuznets Curve," Working Papers 2006.22, Fondazione Eni Enrico Mattei.

    More about this item

    Keywords

    Biodiversity risk; Trade; FDI; Environmental Kuznets curve;
    All these keywords.

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • F18 - International Economics - - Trade - - - Trade and Environment

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:37730. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.