Economics at your fingertips  

Energy savings via FDI? Empirical evidence from developing countries

Michael Hübler and Andreas Keller

Environment and Development Economics, 2010, vol. 15, issue 01, 59-80

Abstract: In this paper we examine the influence of foreign direct investment (FDI) inflows on energy intensities of developing countries empirically. We first replicate a simple ordinary least squares (OLS) estimation, as it is found in the literature, that suggests energy-intensity reductions from FDI inflows. However, the OLS estimation turns out to be spurious and only a starting point for further research. In our regressions we use macro-level panel data on 60 developing countries for the period 1975–2004, including other potential determinants of energy intensities, and carry out robustness checks with more specific data. The results do not confirm the hypothesis that aggregate FDI inflows reduce energy intensity of developing countries. Rather, foreign development aid seems to be related to energy efficiency gains.

Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (55) Track citations by RSS feed

Downloads: (external link) link to article abstract page (text/html)

Related works:
Working Paper: Energy savings via FDI? Empirical evidence from developing countries (2008) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Environment and Development Economics from Cambridge University Press Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK.
Bibliographic data for series maintained by Keith Waters ().

Page updated 2019-04-18
Handle: RePEc:cup:endeec:v:15:y:2010:i:01:p:59-80_99