A Dynamic Approach to the FDI-Environment Nexus: The Case of China and India
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 lo...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Korea Institute for International Economic Policy
2009-12-01
|
| Series: | East Asian Economic Review |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.11644/KIEP.JEAI.2009.13.2.202 |
| Summary: | 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. |
|---|---|
| ISSN: | 2508-1640 2508-1667 |