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The Environmental Effects of FDI: Evidence from MENA Countries

Imad Moosa ()
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Imad Moosa: School of Economics, Finance and Marketing, RMIT

No 1321, Working Papers from Economic Research Forum

Abstract: Empirical work on the environmental effects of FDI has produced a mixed bag of results, with hardly any evidence for MENA countries. A theoretical model is presented, postulating that whether FDI has a positive or negative effect on the environment depends on the position of the underlying country or region on the environmental Kuznets curve. This paper presents results indicating that FDI leads to environmental degradation in MENA countries and that they fall on the rising sector of the EKC. The theoretical model is supported by the empirical results.

New Economics Papers: this item is included in nep-agr, nep-ara, nep-env, nep-hme and nep-int
Date: 2019-08-21, Revised 2019-08-21
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