The environmental impact of industrialization and foreign direct investment

Eric Evans Osei Opoku and Micheal Kofi Boachie

Energy Policy, 2020, vol. 137, issue C

Abstract: In recent years, the major concern about the environment has been the emissions of greenhouse gases and the consequent impact on climate change. There is a huge interest among scholars in examining factors that contribute to environmental degradation. In this study, we examined the environmental impact of foreign direct investment and industrialization in 36 selected African countries using data for the period 1980–2014. We proxied the environment with a number of factors including carbon dioxide, nitrous oxide, methane, and total greenhouse gases emissions. Employing the Pooled Mean Group estimation technique, we found that the effect of industrialization on the environment is generally insignificant. However, the effect of foreign direct investment on the environment is found to be largely significant. Policy implications of these findings are discussed.

Keywords: Environment; Emissions; Foreign direct investment; Industrialization; Africa (search for similar items in EconPapers)
JEL-codes: F18 Q50 Q53 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (71)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:137:y:2020:i:c:s0301421519307645

DOI: 10.1016/j.enpol.2019.111178

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