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Sustainability comes from within: carbon dioxide emissions, FDI origin factor and institutional qualities in developing countries

Sustainability comes from within: carbon dioxide emissions, FDI origin factor and institutional... Abstract Utilizing the Environmental Kuznets Curve (EKC) model, the study examines the environmental impacts of institutional variables in their relationships with foreign direct investment (FDI) in 23 developing countries. All six elements of government indicators are tested while controlling their interaction terms with the two types of FDI, which originate from developed and developing regions. There are two important findings: first, FDI is proven to be an important channel to deliver the environmental effects of institutional qualities. Second, FDI origin factor is critical to the nature of this interactive connection. FDI from developed economies is less affected by sociopolitical factors of a host country, while FDI from developing regions reacts differently in different domestic contexts. The study highlights the importance of institutional reform in the pursuit of sustainable development in the developing world, especially when most of emerging countries are prioritizing FDI-led strategy to fuel their rapid economic growth. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png "Economia Politica" Springer Journals

Sustainability comes from within: carbon dioxide emissions, FDI origin factor and institutional qualities in developing countries

Dang, Phuong Thao
"Economia Politica" , Volume 36 (2): 33 – Jul 1, 2019
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References (54)

Publisher
Springer Journals
Copyright
2019 Springer Nature Switzerland AG
ISSN
1120-2890
eISSN
1973-820X
DOI
10.1007/s40888-019-00151-x
Publisher site
See Article on Publisher Site

Abstract

Abstract Utilizing the Environmental Kuznets Curve (EKC) model, the study examines the environmental impacts of institutional variables in their relationships with foreign direct investment (FDI) in 23 developing countries. All six elements of government indicators are tested while controlling their interaction terms with the two types of FDI, which originate from developed and developing regions. There are two important findings: first, FDI is proven to be an important channel to deliver the environmental effects of institutional qualities. Second, FDI origin factor is critical to the nature of this interactive connection. FDI from developed economies is less affected by sociopolitical factors of a host country, while FDI from developing regions reacts differently in different domestic contexts. The study highlights the importance of institutional reform in the pursuit of sustainable development in the developing world, especially when most of emerging countries are prioritizing FDI-led strategy to fuel their rapid economic growth.

Journal

"Economia Politica" – Springer Journals

Published: Jul 1, 2019

Keywords: Economic Policy; International Political Economy

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