Effect of FDI on CO<sub>2</sub> Emissions: Panel Study from Developing Countries

Mohamed Fathy Abdelgany; Ahmed Gad Mohamed Gad-Elhak

doi:doi:10.11648/j.ijeee.20220704.12

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Effect of FDI on CO₂ Emissions: Panel Study from Developing Countries

Mohamed Fathy Abdelgany, Ahmed Gad Mohamed Gad-Elhak

Published in International Journal of Economy, Energy and Environment (Volume 7, Issue 4)

Received: 29 June 2022 Accepted: 18 July 2022 Published: 28 July 2022

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Abstract

Climate change represents a massive challenge to the continuation of life on Earth; Therefore, it is meaningful to study how different macroeconomic variables affect environmental pollution, to enable policymakers to take appropriate policies that maintain the environment and line up with Sustainable Development Goals (SDGs). So, this paper comes to examine the validity of the Pollution Haven Hypothesis (PHH), and the pollution halo hypothesis besides the Environmental Kuznets Curve (EKC). Furthermore, estimate to what extent FDI affects environmental pollution in developing countries, including energy consumption and income as further determinants of carbon dioxide emissions. To accomplish this purpose, the research employs an econometric model that utilizes the panel data estimation techniques of pooled OLS, fixed effects, and random effects, in addition to, the dynamic Generalized Method of Moments (GMM) estimator. Moreover, the results are confirmed by using two separate samples, the first sample consists of 30 countries and the second sample consists of 42 countries during the period from 1990 to 2019. The research reveals that results from the first and second samples conform with the pollution halo hypothesis, while the EKC hypothesis does not valid in developing countries. Moreover, both energy consumption and economic growth lead to increasing environmental pollution, while FDI leads to a decrease in both samples.

Published in	International Journal of Economy, Energy and Environment (Volume 7, Issue 4)
DOI	10.11648/j.ijeee.20220704.12
Page(s)	87-99
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

Foreign Direct Investment, CO₂ Emissions, Developing Countries, Environmental Kuznets Curve, Pollution Haven Hypothesis, Pollution Halo Hypothesis, Dynamic GMM Approach

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APA Style

Mohamed Fathy Abdelgany, Ahmed Gad Mohamed Gad-Elhak. (2022). Effect of FDI on CO2 Emissions: Panel Study from Developing Countries. International Journal of Economy, Energy and Environment, 7(4), 87-99. https://doi.org/10.11648/j.ijeee.20220704.12

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ACS Style

Mohamed Fathy Abdelgany; Ahmed Gad Mohamed Gad-Elhak. Effect of FDI on CO2 Emissions: Panel Study from Developing Countries. Int. J. Econ. Energy Environ. 2022, 7(4), 87-99. doi: 10.11648/j.ijeee.20220704.12

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AMA Style

Mohamed Fathy Abdelgany, Ahmed Gad Mohamed Gad-Elhak. Effect of FDI on CO2 Emissions: Panel Study from Developing Countries. Int J Econ Energy Environ. 2022;7(4):87-99. doi: 10.11648/j.ijeee.20220704.12

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@article{10.11648/j.ijeee.20220704.12,
  author = {Mohamed Fathy Abdelgany and Ahmed Gad Mohamed Gad-Elhak},
  title = {Effect of FDI on CO2 Emissions: Panel Study from Developing Countries},
  journal = {International Journal of Economy, Energy and Environment},
  volume = {7},
  number = {4},
  pages = {87-99},
  doi = {10.11648/j.ijeee.20220704.12},
  url = {https://doi.org/10.11648/j.ijeee.20220704.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijeee.20220704.12},
  abstract = {Climate change represents a massive challenge to the continuation of life on Earth; Therefore, it is meaningful to study how different macroeconomic variables affect environmental pollution, to enable policymakers to take appropriate policies that maintain the environment and line up with Sustainable Development Goals (SDGs). So, this paper comes to examine the validity of the Pollution Haven Hypothesis (PHH), and the pollution halo hypothesis besides the Environmental Kuznets Curve (EKC). Furthermore, estimate to what extent FDI affects environmental pollution in developing countries, including energy consumption and income as further determinants of carbon dioxide emissions. To accomplish this purpose, the research employs an econometric model that utilizes the panel data estimation techniques of pooled OLS, fixed effects, and random effects, in addition to, the dynamic Generalized Method of Moments (GMM) estimator. Moreover, the results are confirmed by using two separate samples, the first sample consists of 30 countries and the second sample consists of 42 countries during the period from 1990 to 2019. The research reveals that results from the first and second samples conform with the pollution halo hypothesis, while the EKC hypothesis does not valid in developing countries. Moreover, both energy consumption and economic growth lead to increasing environmental pollution, while FDI leads to a decrease in both samples.},
 year = {2022}
}

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TY  - JOUR
T1  - Effect of FDI on CO2 Emissions: Panel Study from Developing Countries
AU  - Mohamed Fathy Abdelgany
AU  - Ahmed Gad Mohamed Gad-Elhak
Y1  - 2022/07/28
PY  - 2022
N1  - https://doi.org/10.11648/j.ijeee.20220704.12
DO  - 10.11648/j.ijeee.20220704.12
T2  - International Journal of Economy, Energy and Environment
JF  - International Journal of Economy, Energy and Environment
JO  - International Journal of Economy, Energy and Environment
SP  - 87
EP  - 99
PB  - Science Publishing Group
SN  - 2575-5021
UR  - https://doi.org/10.11648/j.ijeee.20220704.12
AB  - Climate change represents a massive challenge to the continuation of life on Earth; Therefore, it is meaningful to study how different macroeconomic variables affect environmental pollution, to enable policymakers to take appropriate policies that maintain the environment and line up with Sustainable Development Goals (SDGs). So, this paper comes to examine the validity of the Pollution Haven Hypothesis (PHH), and the pollution halo hypothesis besides the Environmental Kuznets Curve (EKC). Furthermore, estimate to what extent FDI affects environmental pollution in developing countries, including energy consumption and income as further determinants of carbon dioxide emissions. To accomplish this purpose, the research employs an econometric model that utilizes the panel data estimation techniques of pooled OLS, fixed effects, and random effects, in addition to, the dynamic Generalized Method of Moments (GMM) estimator. Moreover, the results are confirmed by using two separate samples, the first sample consists of 30 countries and the second sample consists of 42 countries during the period from 1990 to 2019. The research reveals that results from the first and second samples conform with the pollution halo hypothesis, while the EKC hypothesis does not valid in developing countries. Moreover, both energy consumption and economic growth lead to increasing environmental pollution, while FDI leads to a decrease in both samples.
VL  - 7
IS  - 4
ER  -

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Author Information

Mohamed Fathy Abdelgany

Economics Department, Faculty of Politics and Economics, Beni-Suef University, Beni Suef, Egypt
Ahmed Gad Mohamed Gad-Elhak

Economics Department, Faculty of Politics and Economics, Beni-Suef University, Beni Suef, Egypt

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APA Style

Mohamed Fathy Abdelgany, Ahmed Gad Mohamed Gad-Elhak. (2022). Effect of FDI on CO2 Emissions: Panel Study from Developing Countries. International Journal of Economy, Energy and Environment, 7(4), 87-99. https://doi.org/10.11648/j.ijeee.20220704.12

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ACS Style

Mohamed Fathy Abdelgany; Ahmed Gad Mohamed Gad-Elhak. Effect of FDI on CO2 Emissions: Panel Study from Developing Countries. Int. J. Econ. Energy Environ. 2022, 7(4), 87-99. doi: 10.11648/j.ijeee.20220704.12

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AMA Style

Mohamed Fathy Abdelgany, Ahmed Gad Mohamed Gad-Elhak. Effect of FDI on CO2 Emissions: Panel Study from Developing Countries. Int J Econ Energy Environ. 2022;7(4):87-99. doi: 10.11648/j.ijeee.20220704.12

Copy | Download

@article{10.11648/j.ijeee.20220704.12,
  author = {Mohamed Fathy Abdelgany and Ahmed Gad Mohamed Gad-Elhak},
  title = {Effect of FDI on CO2 Emissions: Panel Study from Developing Countries},
  journal = {International Journal of Economy, Energy and Environment},
  volume = {7},
  number = {4},
  pages = {87-99},
  doi = {10.11648/j.ijeee.20220704.12},
  url = {https://doi.org/10.11648/j.ijeee.20220704.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijeee.20220704.12},
  abstract = {Climate change represents a massive challenge to the continuation of life on Earth; Therefore, it is meaningful to study how different macroeconomic variables affect environmental pollution, to enable policymakers to take appropriate policies that maintain the environment and line up with Sustainable Development Goals (SDGs). So, this paper comes to examine the validity of the Pollution Haven Hypothesis (PHH), and the pollution halo hypothesis besides the Environmental Kuznets Curve (EKC). Furthermore, estimate to what extent FDI affects environmental pollution in developing countries, including energy consumption and income as further determinants of carbon dioxide emissions. To accomplish this purpose, the research employs an econometric model that utilizes the panel data estimation techniques of pooled OLS, fixed effects, and random effects, in addition to, the dynamic Generalized Method of Moments (GMM) estimator. Moreover, the results are confirmed by using two separate samples, the first sample consists of 30 countries and the second sample consists of 42 countries during the period from 1990 to 2019. The research reveals that results from the first and second samples conform with the pollution halo hypothesis, while the EKC hypothesis does not valid in developing countries. Moreover, both energy consumption and economic growth lead to increasing environmental pollution, while FDI leads to a decrease in both samples.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Effect of FDI on CO2 Emissions: Panel Study from Developing Countries
AU  - Mohamed Fathy Abdelgany
AU  - Ahmed Gad Mohamed Gad-Elhak
Y1  - 2022/07/28
PY  - 2022
N1  - https://doi.org/10.11648/j.ijeee.20220704.12
DO  - 10.11648/j.ijeee.20220704.12
T2  - International Journal of Economy, Energy and Environment
JF  - International Journal of Economy, Energy and Environment
JO  - International Journal of Economy, Energy and Environment
SP  - 87
EP  - 99
PB  - Science Publishing Group
SN  - 2575-5021
UR  - https://doi.org/10.11648/j.ijeee.20220704.12
AB  - Climate change represents a massive challenge to the continuation of life on Earth; Therefore, it is meaningful to study how different macroeconomic variables affect environmental pollution, to enable policymakers to take appropriate policies that maintain the environment and line up with Sustainable Development Goals (SDGs). So, this paper comes to examine the validity of the Pollution Haven Hypothesis (PHH), and the pollution halo hypothesis besides the Environmental Kuznets Curve (EKC). Furthermore, estimate to what extent FDI affects environmental pollution in developing countries, including energy consumption and income as further determinants of carbon dioxide emissions. To accomplish this purpose, the research employs an econometric model that utilizes the panel data estimation techniques of pooled OLS, fixed effects, and random effects, in addition to, the dynamic Generalized Method of Moments (GMM) estimator. Moreover, the results are confirmed by using two separate samples, the first sample consists of 30 countries and the second sample consists of 42 countries during the period from 1990 to 2019. The research reveals that results from the first and second samples conform with the pollution halo hypothesis, while the EKC hypothesis does not valid in developing countries. Moreover, both energy consumption and economic growth lead to increasing environmental pollution, while FDI leads to a decrease in both samples.
VL  - 7
IS  - 4
ER  -

Copy | Download