Environmental Accounting of Financial Development and Foreign Investment: Spatial Analyses of East Asia

Haider Mahmood (), Maham Furqan and Omar Ali Bagais
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Maham Furqan: S&P Global Marketing Intelligence, Islamabad 44000, Pakistan
Omar Ali Bagais: Department of Accounting, College of Business Administration, Prince Sattam bin Abdulaziz University, 165, Al-Kharj 11942, Saudi Arabia

Sustainability, 2018, vol. 11, issue 1, 1-16

Abstract: This paper aspires to examine the environmental effects of financial market development (FMD), foreign direct investment (FDI), and trade openness on the CO 2 emissions per capita along with the environmental Kuznets curve (EKC) hypothesis in six East Asian countries from 1991–2014. For this purpose, spatial econometrics is applied to consider the spillover effects from neighboring countries. The results of the study corroborate the spillover effects from neighboring countries’ CO 2 emissions per capita, FMD, FDI, and trade openness, and the EKC hypothesis is proven true in this region. Local FDI inflows, trade openness, and energy intensity are found to be responsible for local environmental degradation. Local FMD has an insignificant environmental effect, but neighboring countries’ FMD has contributed to the local CO 2 emissions per capita. Further, positive (negative) environmental spillover effects are found from neighboring countries’ FDI (trade openness).

Keywords: CO 2 emissions per capita; FMD; FDI; trade openness (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:11:y:2018:i:1:p:13-:d:191992

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