A Dynamic Approach to the FDI-Environment Nexus: The Case of China and India

Jungho Baek; Won W. Koo

doi:10.11644/KIEP.JEAI.2009.13.2.202

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No	Title
1	Heterogeneous Human Capital and Environment Influence Mechanism of FDI: An Empirical Research Based on the Panel Data Derived from Provinces of China / 2016 / Modern Economy / vol.07, no.03, pp.290 / 10.4236/me.2016.73031
2	Does Foreign Direct Investment Affect Green Growth? Evidence from China’s Experience / 2016 / Sustainability / vol.8, no.12, pp.158 / 10.3390/su8020158
3	Green field investment and environmental performance: A case of selected nine developing countries of Asia / 2017 / Environmental Progress & Sustainable Energy 10.1002/ep.12740
4	Does Foreign Direct Investment Harm the Environment in Developing Countries? Dynamic Panel Analysis of Latin American Countries / 2017 / Economies / vol.5, no.4, pp.39 / 10.3390/economies5040039
5	The effect of FDI on environmental emissions: Evidence from a meta-analysis / 2019 / Energy Policy pp.111192 / 10.1016/j.enpol.2019.111192
6	The importance of renewable energy consumption and FDI inflows in reducing environmental degradation: Bootstrap ARDL bound test in selected 9 countries / 2020 / Journal of Cleaner Production / vol.264, pp.121663 / 10.1016/j.jclepro.2020.121663
7	Home governments facilitate cleaner operations of outward foreign direct investment: A case study of a cleaner production partnership programme / 2020 / Journal of Cleaner Production / vol.265, pp.121914 / 10.1016/j.jclepro.2020.121914
8	Demystifying pollution haven hypothesis: Role of FDI / 2021 / Journal of Business Research / vol.123, pp.516 / 10.1016/j.jbusres.2020.10.007
9	Environmental risk, FDI and tax reforms: why we must worry / 2021 / African Journal of Economic and Management Studies / vol.ahead-of-print, no.ahead-of-print, 10.1108/AJEMS-08-2020-0399
10	Impact of stock market, renewable energy consumption and urbanization on environmental degradation: new evidence from BRICS countries / 2021 / Environmental Science and Pollution Research 10.1007/s11356-021-12731-1
11	Trade-environment nexus in OIC countries: fresh insights from environmental Kuznets curve using GHG emissions and ecological footprint / 2021 / Environmental Science and Pollution Research / vol.28, no.4, pp.4531 / 10.1007/s11356-020-10845-6
12	Nexus between environmental quality, institutional quality and trade openness through the channel of FDI: an application of common correlated effects estimation (CCEE), NARDL, and asymmetry causality / 2021 / Environmental Science and Pollution Research / vol.28, no.37, pp.52475 / 10.1007/s11356-021-14269-8
13	The two faces of FDI in environmental performance: a meta-analysis of empirical evidence in China / 2022 / Journal of Chinese Economic and Business Studies / vol.20, no.1, pp.65 / 10.1080/14765284.2021.1943735
14	The effect of sustainability on foreign direct investment inflows: evidence from developing countries / 2022 / Social Responsibility Journal / vol.18, no.4, pp.681 / 10.1108/SRJ-08-2019-0289
15	Dynamic common correlated effects of pandemic uncertainty on environmental quality: fresh insights from East-Asia and Pacific countries / 2022 / Air Quality, Atmosphere & Health / vol.15, no.8, pp.1395 / 10.1007/s11869-022-01164-5
16	Does technology innovation matter for environmental pollution? Testing the pollution halo/haven hypothesis for Asian countries / 2022 / Environmental Science and Pollution Research / vol.29, no.59, pp.89753 / 10.1007/s11356-022-21929-w
17	Do Economic Growth, Energy Consumption and Population damage the Environmental Quality? Evidence from Five Regions Using the Nonlinear ARDL Approach / 2022 / Environmental Challenges / vol.8, pp.100554 / 10.1016/j.envc.2022.100554
18	Does China’s Carbon Trading Pilot Policy Reduce Carbon Emissions? Empirical Analysis from 285 Cities / 2023 / International Journal of Environmental Research and Public Health / vol.20, no.5, pp.4421 / 10.3390/ijerph20054421
19	Capital flow and environmental quality at crossroads: designing a sustainable policy framework for the newly industrialized countries / 2023 / Environmental Science and Pollution Research / vol.30, no.31, pp.76746 / 10.1007/s11356-023-27794-5
20	Causal relationships between carbon dioxide emissions and economic factors: Evidence from China / 2020 / Sustainable Development / vol.28, no.1, pp.73 / 10.1002/sd.1966
21	The moderating effects of environmental and regulatory quality on financial development to promote sustainable FDI inflows in Canada / 2024 / Discover Sustainability / vol.5, no.1, 10.1007/s43621-024-00340-0
22	Bridging the Gap: Financial Inclusion's Role in Environmental Sustainability in Pakistan / 2023 / Journal of Accounting and Finance in Emerging Economies / vol.9, no.3, pp.369 / 10.26710/jafee.v9i3.2781
23	Causal Interaction between FDI, Corruption and Environmental Quality in the MENA Region / 2021 / Economies / vol.9, no.1, pp.14 / 10.3390/economies9010014
24	The role of greenfield investment and investment freedom on environmental quality: testing the EKC hypothesis for EU countries / 2024 / International Journal of Sustainable Development & World Ecology / vol.31, no.6, pp.684 / 10.1080/13504509.2024.2326567
25	Assessing decarbonization: a comparison of the green sacrifice ratio for China and India / 2024 / International Journal of Sustainable Development & World Ecology / vol.31, no.4, pp.411 / 10.1080/13504509.2023.2294461
26	Exporting, ownership status and energy efficiency: A micro-level study in the Indian manufacturing sector / 2025 / Journal of Environmental Management / vol.385, pp.125642 / 10.1016/j.jenvman.2025.125642
27	Carbon emissions and the rising effect of trade openness and foreign direct investment: Evidence from a threshold regression model / 2023 / Heliyon / vol.9, no.7, pp.e17448 / 10.1016/j.heliyon.2023.e17448

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East Asian Economic Review Vol. 13, No. 2, 2009. pp. 87-106.

DOI https://dx.doi.org/10.11644/KIEP.JEAI.2009.13.2.202

Number of citation : 27

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A Dynamic Approach to the FDI-Environment Nexus: The Case of China and India

Author
Jungho Baek	University of Alaska Fairbanks;North Dakota State University jbaek3@alaska.edu
Won W. Koo	won.koo@ndsu.edu

EAER is an open access journal 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, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license.

Abstract

An autoregressive distributed lag (ARDL) model is applied to examine the short- and long-run relationships among foreign direct investment (FDI), economic growth, and the environment in China and India. We find that, for China, FDI tends to deteriorate environmental quality in both the short- and long-run. For India, on the other hand, FDI is found to have a detrimental effect on the environment in the short-run, but has little effect in the long-run. Finally, it is found that income growth in both countries tends to worsen the environment in both short- and long-run.

JEL classification: F18, Q56, C22

Keywords

China, Environment, Foreign Direct Investment, India, Time-series Analysis

Language

English

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