The Relationship between Economic Growth, Foreign Direct Investment and Environmental Pollution in BRICS-T Countries: Empirical Analysis of the Environmental Kuznets Curve and Pollution Haven Hypotheses

Abstract

Global warming, environmental pollution and uncontrolled use of resources are accepted as critical threats to human life and sustainable development. This study aims to examine the relationships between economic growth, foreign direct investment and environmental pollution in BRICS-T countries in the context of environmental Kuznets curve and pollution haven hypotheses. Second-generation panel data analysis methods were employed in the study, in which annual data from the period 1992-2017 were used. Findings obtained from the cointegration test indicate that the variables move together in the long run, that is, they are cointegrated. According to the result of the estimation, it has been determined that the environmental Kuznets curve, which claims that there is an inverted-U-shaped relationship between environmental pollution and economic growth, and the pollution haven hypothesis, which states that there is a positive relationship between environmental pollution and foreign direct investments, are both valid for BRICS-T countries. From the causality test, however, empirical evidence shows that there is a one-way causality relationship from economic growth to environmental pollution and from environmental pollution to foreign direct investment. Based on the evidence obtained, it is recommended that BRICS-T countries focus more on sustainable development and environment rather than economic growth, and improve their foreign direct investment standards.

Keywords

• Sustainable Development
• Ecological Footprint
• Environmental Kuznets Curve
• Pollution Haven Hypothesis
• BRICS-T.

BRICS-T Ülkelerinde Ekonomik Büyüme, Doğrudan Yabancı Yatırım ve Çevresel Kirlilik İlişkisi: Çevresel Kuznets Eğrisi ve Kirlilik Sığınağı Hipotezlerinin Ampirik Analizi

Öz

Küresel ısınma, çevresel kirlilik ve kaynakların kontrolsüz kullanımı insan yaşamı ve sürdürülebilir kalkınma için ciddi bir tehdit olarak kabul edilmektedir. Bu çalışmanın amacı BRICS–T ülkelerinde ekonomik büyüme, doğrudan yabancı yatırımlar ve çevresel kirlilik arasındaki ilişkileri çevresel Kuznets eğrisi ve kirlilik sığınağı hipotezleri bağlamında incelemektir. 1992–2017 dönemine ait yıllık verilerin kullanıldığı çalışmada ikinci nesil panel veri analizi yöntemleri uygulanmıştır. Eşbütünleşme testinden ulaşılan bulgularda değişkenlerin uzun dönemde birlikte hareket ettikleri yani eşbütünleşik oldukları tespit edilmiştir. Tahmin sonucunda BRICS–T ülkeleri için, çevre kirliliği ile ekonomik büyüme arasında ters–U şeklinde bir ilişkinin olduğunu ileri süren çevresel Kuznets eğrisi ve çevresel kirlilik ile doğrudan yabancı yatırımlar arasında pozitif bir ilişkinin olduğunu ifade eden kirlilik sığınağı hipotezlerinin geçerli olduğu belirlenmiştir. Nedensellik testinden ise ekonomik büyümeden çevresel kirliliğe ve çevresel kirlilikten doğrudan yabancı yatırımlara tek yönlü bir nedensellik ilişkisinin olduğuna yönelik ampirik kanıtlar elde edilmiştir. Elde edilen kanıtlar doğrultusunda BRICS–T ülkelerine, ekonomik büyümeden ziyade sürdürülebilir kalkınma ve çevre konularına daha fazla odaklanmaları ve doğrudan yabancı yatırım standartlarını geliştirmeleri önerilmektedir.

Anahtar Kelimeler

• Sürdürülebilir Kalkınma
• Ekolojik Ayak İzi
• Çevresel Kuznets Eğrisi
• Kirlilik Sığınağı Hipotezi
• BRICS-T.

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