Influence of foreign direct investment on carbon dioxide emissions in newly industrialized countries: A panel ARDL-PMG approach

OpenAlex İngilizce

In this study, the effect of foreign direct investment on carbon dioxide emissions was analyzed using annual data for the 1990-2016 period for the newly industrialized countries.The study was analyzed using Panel Pooled Mean Group-Autoregressive distributive lag cointegration test and Dumitrescu and Hurlin panel causality test.As a result of the long-term analysis, the foreign direct investment, energy consumption and trade openness have a positive and significant impact on carbon dioxide emissions whereas economic growth has negative and significant impact on carbon dioxide emissions.It has been analyzed that a 1% increase in foreign direct investment increases carbon dioxide emission by 0.03%.According to Dumitrescu and Hurlin panel causality tests analysis results, a bidirectional causality relationship between energy consumption and carbon dioxide emissions; a unidirectional causality relationship from economic growth and trade openness to carbon dioxide emissions and from carbon dioxide emissions to foreign direct investment has been determined.