The Impact of Foreign Direct Investment on CO2 Emissions in ASEAN Countries

Eriandani, Rizky and Anam, Saiful and Prastiwi, Dewi and Triani, Ni Nyoman Alit (2020) The Impact of Foreign Direct Investment on CO2 Emissions in ASEAN Countries. International Journal of Energy Economics and Policy, 10 (5). pp. 584-592. ISSN 2146-4553

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Official URL / DOI: https://doi.org/10.32479/ijeep.10230

Abstract

The aim associated with the present study is to examine the sector-specific foreign direct investment and CO2 emissions. This study employs panel Granger causality tests to investigate the association between sector-specific foreign direct investment and CO2 emissions. Using a sample of 5 ASEAN countries for the period of 1980 to 2018, we find causality running from foreign direct investment in polluting intensive industries (“the dirty sector”) to CO2 emissions per capita. This result is robust to controlling for other factors associated with CO2emissions and using the ratio of CO2emissions to GDP. For other sectors, we find no robust evidence that FDI causes CO2 emissions. These findings are suitable for the regulation making authorities while developing the regulation related to the FDI and carbon emissions. This study provides the guidelines to the upcoming studies who wants to investigate this area in the future and suggested that upcoming studies should add other that FDI factor to investigate the carbon emissions.

Item Type: Article
Uncontrolled Keywords: Carbon Emissions, Foreign Direct Investment, Granger Causality tests, ASEAN Countries
Subjects: G Geography. Anthropology. Recreation > GE Environmental Sciences
H Social Sciences > HB Economic Theory
H Social Sciences > HF Commerce > HF5601 Accounting
H Social Sciences > HG Finance
Divisions: Faculty of Business and Economic > Department of Accounting
Depositing User: RIZKY ERIANDANI M.Ak. - 209174
Date Deposited: 18 Aug 2020 02:00
Last Modified: 23 Feb 2021 03:31
URI: http://repository.ubaya.ac.id/id/eprint/38013

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