A Dynamic Approach to the FDI-Environment Nexus: The Case of China and India

Jungho Baek and Won W. Koo ()
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Won W. Koo: North Dakota State University

East Asian Economic Review, 2009, vol. 13, issue 2, 87-106

Abstract: An autoregressive distributed lag (ARDL) model is applied to examine the short- and long-run relationships among foreign direct investment (FDI), economic growth, and the environment in China and India. We find that, for China, FDI tends to deteriorate environmental quality in both the short- and long-run. For India, on the other hand, FDI is found to have a detrimental effect on the environment in the short-run, but has little effect in the long-run. Finally, it is found that income growth in both countries tends to worsen the environment in both short- and long-run.

Keywords: China; Environment; Foreign Direct Investment; India; Time-series Analysis (search for similar items in EconPapers)
JEL-codes: C22 F18 Q56 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (35)

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http://dx.doi.org/10.11644/KIEP.JEAI.2009.13.2.202 Full text (application/pdf)

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Working Paper: A Dynamic Approach to the FDI-Environment Nexus: The Case of China and India (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:eaerev:0116

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