Relationship among Foreign Direct Investment, Economic Growth and CO2 Emission: A Panel Data Analysis

Mohd Shahidan Shaari; Nor Ermawati Hussain; Hussin Abdullah; Syahida Kamil

EN

Relationship among Foreign Direct Investment, Economic Growth and CO2 Emission: A Panel Data Analysis

Abstract

This study aims to investigate the effects of foreign direct investment and economic growth on CO2 emission. The panel data for the period of 1992 to 2012 from 15 developing countries were collected. The Johansen co-integration was conducted and the results show that there is co-integrated relationship between the variables (FDI, CO2 and GDP). Then the FMOLS was done and it was found that in the long run foreign direct investment does not have any effect on CO2 emission. Therefore, it suggests that an increase in FDI does not influence CO2 emission. However an increase in economic growth can intensify CO2 emission. Therefore, the developing countries should formulate policies on the environment in order to accomplish economic sustainability. At last, Granger causality based on VECM was employed and the results suggest there is no effect of FDI and GDP on CO2 emission in the short run.

Keywords

CO2 emissions, economic growth, foreign direct investment

Details

Primary Language

English

Subjects

-

Journal Section

-

Authors

Mohd Shahidan Shaari This is me

Nor Ermawati Hussain This is me

Hussin Abdullah This is me

Syahida Kamil This is me

Publication Date

December 1, 2014

Submission Date

December 1, 2014

Acceptance Date

-

Published in Issue

Year 2014 Volume: 4 Number: 4

IZ

https://izlik.org/JA54RW54DD

Cite

RIS / Bibtex

APA

Shaari, M. S., Hussain, N. E., Abdullah, H., & Kamil, S. (2014). Relationship among Foreign Direct Investment, Economic Growth and CO2 Emission: A Panel Data Analysis. International Journal of Energy Economics and Policy, 4(4), 706-715. https://izlik.org/JA54RW54DD

AMA

1.Shaari MS, Hussain NE, Abdullah H, Kamil S. Relationship among Foreign Direct Investment, Economic Growth and CO2 Emission: A Panel Data Analysis. IJEEP. 2014;4(4):706-715. https://izlik.org/JA54RW54DD

Chicago

Shaari, Mohd Shahidan, Nor Ermawati Hussain, Hussin Abdullah, and Syahida Kamil. 2014. “Relationship Among Foreign Direct Investment, Economic Growth and CO2 Emission: A Panel Data Analysis”. International Journal of Energy Economics and Policy 4 (4): 706-15. https://izlik.org/JA54RW54DD.

EndNote

Shaari MS, Hussain NE, Abdullah H, Kamil S (December 1, 2014) Relationship among Foreign Direct Investment, Economic Growth and CO2 Emission: A Panel Data Analysis. International Journal of Energy Economics and Policy 4 4 706–715.

IEEE

[1]M. S. Shaari, N. E. Hussain, H. Abdullah, and S. Kamil, “Relationship among Foreign Direct Investment, Economic Growth and CO2 Emission: A Panel Data Analysis”, IJEEP, vol. 4, no. 4, pp. 706–715, Dec. 2014, [Online]. Available: https://izlik.org/JA54RW54DD

ISNAD

Shaari, Mohd Shahidan - Hussain, Nor Ermawati - Abdullah, Hussin - Kamil, Syahida. “Relationship Among Foreign Direct Investment, Economic Growth and CO2 Emission: A Panel Data Analysis”. International Journal of Energy Economics and Policy 4/4 (December 1, 2014): 706-715. https://izlik.org/JA54RW54DD.

JAMA

1.Shaari MS, Hussain NE, Abdullah H, Kamil S. Relationship among Foreign Direct Investment, Economic Growth and CO2 Emission: A Panel Data Analysis. IJEEP. 2014;4:706–715.

MLA

Shaari, Mohd Shahidan, et al. “Relationship Among Foreign Direct Investment, Economic Growth and CO2 Emission: A Panel Data Analysis”. International Journal of Energy Economics and Policy, vol. 4, no. 4, Dec. 2014, pp. 706-15, https://izlik.org/JA54RW54DD.

Vancouver

1.Mohd Shahidan Shaari, Nor Ermawati Hussain, Hussin Abdullah, Syahida Kamil. Relationship among Foreign Direct Investment, Economic Growth and CO2 Emission: A Panel Data Analysis. IJEEP [Internet]. 2014 Dec. 1;4(4):706-15. Available from: https://izlik.org/JA54RW54DD