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Threshold effect of foreign direct investment on environmental degradation

dc.contributor.authorShu-Chen, Chang
dc.date.accessioned2018-06-27T10:50:31Z
dc.date.available2018-06-27T10:50:31Z
dc.date.issued2015-12
dc.description.abstractThe aim of this paper is to investigate the threshold effect of foreign direct investment (FDI) on environmental degradation. In empirical analysis, FDI and environmental degradation are jointly determined under the given threshold variable and other exogenous variables. Using carbon dioxide (CO2) emissions per capita as a proxy for environmental degradation, the results show that increasing FDI worsens CO2 emissions after a threshold level of corruption has been reached. Our results demonstrate that increasing FDI will increase CO2 emissions when the degree of corruptibility is relatively high. The study suggests that further FDI and improved environmental quality are competing rather than compatible objectives in high-corruption countries and are compatible rather than competing objectives in low-corruption countries. Higher trade liberalization in low-corruption countries could contribute to negative environmental consequences because of the increased output or economic activity which results from increased trade. The robustness estimation confirms the evidence that pollution and economic development increase together up to a certain income level, after which the trend reverses.pt_PT
dc.description.versioninfo:eu-repo/semantics/publishedVersionpt_PT
dc.identifier.citationShu-Chen, Chang (2015). "Threshold effect of foreign direct investment on environmental degradation". Portuguese Economic Journal, 14(1-3):75-102pt_PT
dc.identifier.doi10.1007/s10258-015-0112-3pt_PT
dc.identifier.issn1617-982X (print)
dc.identifier.issn1617-9838 (online)
dc.identifier.urihttp://hdl.handle.net/10400.5/15731
dc.language.isoengpt_PT
dc.peerreviewedyespt_PT
dc.publisherSpringer Verlagpt_PT
dc.subjectCO2 emissionspt_PT
dc.subjectEnvironmental degradationpt_PT
dc.subjectForeign direct investmentpt_PT
dc.subjectThreshold modelspt_PT
dc.titleThreshold effect of foreign direct investment on environmental degradationpt_PT
dc.typejournal article
dspace.entity.typePublication
oaire.citation.conferencePlaceLisboapt_PT
oaire.citation.endPage102pt_PT
oaire.citation.issue1-3pt_PT
oaire.citation.startPage75pt_PT
oaire.citation.titlePortuguese Economic Journalpt_PT
oaire.citation.volume14pt_PT
rcaap.rightsclosedAccesspt_PT
rcaap.typearticlept_PT

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