Foreign Direct Investments and CO2 Emissions Relationship: The Case of Turkey

Zerrin Kılıçarslan and Yasemin Dumrul
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Zerrin Kılıçarslan: Erciyes University
Yasemin Dumrul: Erciyes University

Business and Economics Research Journal, 2017, vol. 8, issue 4, 647-660

Abstract: In this study, it is aimed to analyze the environmental impact of foreign direct investment. The theoretical and applied literature on the relationship between foreign direct investment and carbon dioxide (CO2) emissions is presented. The study examines the relationship between foreign direct investment and pollution by using Johansen Cointegration test and vector error correction model in Turkey, for 1974-2013 period. The main conclusion of the study is that foreign direct investment positively affects carbon dioxide emissions in the long run. The results indicate the validity of Pollution Haven hypothesis in Turkey.

Keywords: Foreign Direct Investment; Carbon Dioxide Emissions; Pollution Haven Hypothesis; Pollution Halo Hypothesis (search for similar items in EconPapers)
JEL-codes: F18 F21 Q56 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:buecrj:0293

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