INFLUENCE OF FOREIGN DIRECT INVESTMENT ON CARBON DIOXIDE EMISSIONS IN NEWLY INDUSTRIALIZED COUNTRIES: A PANEL ARDL-PMG APPROACH

Dam M. M., GÖKBUNAR A. R., Yildiz B., Bulut Ş.

Environmental Engineering and Management Journal, cilt.21, sa.5, ss.745-756, 2022 (SCI-Expanded) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 21 Sayı: 5
  • Basım Tarihi: 2022
  • Dergi Adı: Environmental Engineering and Management Journal
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Aqualine, Aquatic Science & Fisheries Abstracts (ASFA), CAB Abstracts, Environment Index, Greenfile, Pollution Abstracts, Veterinary Science Database
  • Sayfa Sayıları: ss.745-756
  • Anahtar Kelimeler: CO2 emissions, foreign direct investment, NIC countries, PMG panel ARDL
  • Manisa Celal Bayar Üniversitesi Adresli: Evet

Özet

In this study, the effect of foreign direct investment on carbon dioxide emissions was analyzed using annual data for the 1990-2016 period for the newly industrialized countries. The study was analyzed using Panel Pooled Mean Group-Autoregressive distributive lag cointegration test and Dumitrescu and Hurlin panel causality test. As a result of the long-term analysis, the foreign direct investment, energy consumption and trade openness have a positive and significant impact on carbon dioxide emissions whereas economic growth has negative and significant impact on carbon dioxide emissions. It has been analyzed that a 1% increase in foreign direct investment increases carbon dioxide emission by 0.03%. According to Dumitrescu and Hurlin panel causality tests analysis results, a bidirectional causality relationship between energy consumption and carbon dioxide emissions; a unidirectional causality relationship from economic growth and trade openness to carbon dioxide emissions and from carbon dioxide emissions to foreign direct investment has been determined.