Economic Growth and Environmental Impacts of Foreign Direct Investment in Emerging Market Economies

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Author(s): Adem Gök (Kırklareli University, Turkey)
Copyright: 2019
Pages: 16
Source title: Handbook of Research on Economic and Political Implications of Green Trading and Energy Use
Source Author(s)/Editor(s): Ramesh Chandra Das (Vidyasagar University, India)
DOI: 10.4018/978-1-5225-8547-3.ch006

Keywords: Business Science Reference / Economics and Economic Theory / Environment & Agriculture / Sustainable Development

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Abstract

The chapter investigates the role of FDI on growth, the role of FDI on environmental quality, and the role of environmental quality on FDI in 23 emerging market economies over the period of 1993-2014 by panel VAR analysis. It observes that FDI contributes to economic growth and environmental degradation in emerging market economies. In addition, environmental degradation attracts FDI inflows into host emerging market economies. The results support pollution haven hypothesis and contradict pollution halo hypothesis.

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Economic Growth and Environmental Impacts of Foreign Direct Investment in Emerging Market Economies

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