Foreign direct investment, pollution and economic growth: evidence from Malaysia

Chew Ging Lee

Applied Economics, 2009, vol. 41, issue 13, 1709-1716

Abstract: The bounds test developed by Pesaran et al. (2001) is applied to examine the existence of a long-run relationship between foreign direct investment (FDI) inflows, pollution and output of Malaysia. Granger causality tests are also utilized to test for the presence of the short-run and long-run causal relationship between these variables. Both FDI inflows and pollution have short-run causal relationship on output. Output only has long-run causal relationship on FDI inflows.

Date: 2009
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DOI: 10.1080/00036840701564376

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