Foreign Direct Investment, Pollution, and Economic Growth

Takvor H. Mutafoglu

Journal of Developing Societies, 2012, vol. 28, issue 3, 281-297

Abstract: The purpose of this study is to investigate the relationships among Foreign Direct Investment (FDI) inflows, Carbon Dioxide (CO 2 ) emissions, and economic growth in terms of Gross Domestic Product (GDP) for Turkey over the period of 1987Q1–2009Q4. The cointegration analyses suggest that there is a stable long-run equilibrium relationship among the variables under consideration and the results of the Granger causality test, produced from the error-correction model (ECM), show that there is a causal relationship between the variables and lends support to the pollution-haven hypothesis. However, there appears to be no evidence of FDI-led growth in the data.

Keywords: foreign direct investment; pollution; economic growth; cointegration; causality (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:sae:jodeso:v:28:y:2012:i:3:p:281-297

DOI: 10.1177/0169796X12453780

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