Details

Autor(en) / Beteiligte

• Nadeem, Abdul M.
• Ali, Tariq
• Khan, Muhammad T. I.
• Guo, Zhengquan

Titel

Relationship between inward FDI and environmental degradation for Pakistan: an exploration of pollution haven hypothesis through ARDL approach

Ist Teil von

• Environmental science and pollution research international, 2020-05, Vol.27 (13), p.15407-15425

Ort / Verlag

Berlin/Heidelberg: Springer Berlin Heidelberg

Erscheinungsjahr

2020

Quelle

Alma/SFX Local Collection

Beschreibungen/Notizen

• In many developing countries, rising pollution and FDI inflows are positively correlated. This paper explores the existence of pollution haven hypothesis in Pakistan by employing the autoregressive distributed lag (ARDL) bounds test on yearly data from 1971 to 2014 for foreign direct investment inflow and four pollutants, i.e., CO 2 emissions, CO 2 emissions from solid fuels, SO 2 emissions, and GHG emissions. In each case, eight different models are tested by incorporating different explanatory variables with foreign direct investment inflow. The outcome of this study shows that in some of the models a positive long-term relationship exists between FDI inflow and CO 2 emissions, CO 2 emissions from solid fuels, and GHG emissions and a negative long-term relationship between FDI inflow and SO 2 emissions. Overall, we found no conclusive evidence of the existence of the pollution haven hypothesis for Pakistan. As Pakistan is taking active measures to attract more FDI, it is essential to introduce appropriate environmental policies and institutional reforms that do not hinder FDI inflows.