Do human capital and governance thresholds matter for the environmental impact of FDI? The evidence from MENA countries
Copyright policy )Do human capital and governance thresholds matter for the environmental impact of FDI? The evidence from MENA countries
Abstract This paper studies whether foreign direct investment (FDI)-CO2 emissions relationship may change depending on the data-driven estimated threshold levels for the country characteristics (CC) including human capital and governance in a sample of 13 Middle East and North Africa (MENA) economies during the 1996–2019 period. Our results strongly suggest that endogenously estimated CC thresholds matter for the impact of FDI on CO2 emissions. The pollution haven hypothesis which maintains that FDI is associated with higher levels of pollution, appears to be valid for economies with weak CC. In addition to this, the pollution halo argument suggesting FDI lowers the emissions appears to be hold in countries with strong CC. The results in this study may indicate that policies aiming to improve human capital and governance may be expected not only to increase the economic benefits of FDI in terms of growth but also mitigate the negative environmental impacts of FDI in the MENA region. JEL Classification: C13, C33, F21, F30, O50, Q56.
- Ankara Yıldırım Beyazıt University Turkey
- Sinop University Turkey
Monetary economics, Economics and Econometrics, Economic Implications of Climate Change Policies, Economics, Macroeconomics, Social Sciences, Economic Impact of Environmental Policies and Resources, Environment, International economics, CO2 emissions, Panel threshold model, Middle East, Economic Impacts, Africa, Northern, Humans, Human capital, Investments, Rebound Effect on Energy Efficiency and Consumption, Biology, CO2 Emissions, Economic growth, Development economics, Governance, Energy, Corporate governance, Ecology, Renewable Energy, Sustainability and the Environment, Carbon Dioxide, Pollution, Economics, Econometrics and Finance, Impact of Infrastructure and Taxation on Economic Growth, FOS: Biological sciences, Physical Sciences, Middle East and North Africa economies, Economic Development, Environmental Pollution, Foreign direct investment, Pollution haven hypothesis, Finance
Monetary economics, Economics and Econometrics, Economic Implications of Climate Change Policies, Economics, Macroeconomics, Social Sciences, Economic Impact of Environmental Policies and Resources, Environment, International economics, CO2 emissions, Panel threshold model, Middle East, Economic Impacts, Africa, Northern, Humans, Human capital, Investments, Rebound Effect on Energy Efficiency and Consumption, Biology, CO2 Emissions, Economic growth, Development economics, Governance, Energy, Corporate governance, Ecology, Renewable Energy, Sustainability and the Environment, Carbon Dioxide, Pollution, Economics, Econometrics and Finance, Impact of Infrastructure and Taxation on Economic Growth, FOS: Biological sciences, Physical Sciences, Middle East and North Africa economies, Economic Development, Environmental Pollution, Foreign direct investment, Pollution haven hypothesis, Finance
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