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

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

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

Year 2014, Volume: 4 Issue: 4, 706 - 715, 01.12.2014

Mohd Shahidan Shaari Nor Ermawati Hussain Hussin Abdullah Syahida Kamil

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

Year 2014, Volume: 4 Issue: 4, 706 - 715, 01.12.2014

Mohd Shahidan Shaari Nor Ermawati Hussain Hussin Abdullah Syahida Kamil

Abstract

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Details

Other ID	JA39TJ73TU
Journal Section	Research Article
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
Published in Issue	Year 2014 Volume: 4 Issue: 4

Cite

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.
AMA	Shaari MS, Hussain NE, Abdullah H, Kamil S. Relationship among Foreign Direct Investment, Economic Growth and CO2 Emission: A Panel Data Analysis. IJEEP. December 2014;4(4):706-715.
Chicago	Shaari, Mohd Shahidan, Nor Ermawati Hussain, Hussin Abdullah, and Syahida Kamil. “Relationship Among Foreign Direct Investment, Economic Growth and CO2 Emission: A Panel Data Analysis”. International Journal of Energy Economics and Policy 4, no. 4 (December 2014): 706-15.
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	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, 2014.
ISNAD	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 4/4 (December 2014), 706-715.
JAMA	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, 2014, pp. 706-15.
Vancouver	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):706-15.