This study examines the relationship between foreign direct investment (FDI), institutional quality, and environmental degradation in 50 developing countries from 1996 to 2024. Using a panel ARDL model, it distinguishes between short- and long-run effects on CO₂ emissions. The results strongly support the Pollution Haven Hypothesis (PHH). FDI, trade openness, and economic growth significantly increase emissions in the long run. In contrast, corruption control plays a key mitigating role. In the short run, the impact of FDI is limited, but causality tests reveal a one-way effect from FDI to emissions. This highlights the structural influence of foreign investment on environmental outcomes. Countries with weak governance are particularly vulnerable. Foreign capital often flows into pollution-intensive sectors. Strengthening institutions and promoting green FDI are essential for sustainable development.
Foreign direct investment (FDI) is the largest source of external finance for the developing countries that partner with the Belt and Road Initiative (BRI). However, its consequences for climate action and green development remain contested: the pollution-haven view expects capital to migrate to jurisdictions with lax...
K. M. Anwarul Islam· Bangladesh Journal of Multid...· 0 citations
This paper analyzes the role of capital account openness and institutional quality in attracting European foreign direct investment (FDI) to North Africa over the period 2009–2023. Relying on a panel of five countries and instrumental‐variable estimations using the two‐stage least squares (2SLS‐IV) method, the study...
Mahdi Mnasri· African Development Review· 0 citations
This research examines the impact of economic growth, foreign direct investment, and trade openness on environmental quality in Africa. Moreover, the study considers the moderating role of institutional quality in this relationship. The study employs a two-step system GMM estimator for a dataset of 946 observations f...
This paper investigates how country-level environmental, social, and governance (ESG) conditions and foreign direct investment (FDI) are associated with different development-related outcomes. Using an unbalanced panel of 50 countries over 2003–2023, the study constructs ESG pillar indices and estimates static and dyna...
This study examined institutional thresholds in the relationship between foreign resource
inflows and economic growth in the Global South, focusing on Foreign Direct Investment
(FDI), Official Development Assistance (ODA), and Foreign Portfolio Investment (FPI). A
dynamic panel threshold framework estimated via the...
Godgift Anyamaobi Nwankwo· IIARD International Journal...· 0 citations
This study investigates the impact of economic freedom on foreign direct investment inflows in 17 developing countries over the period 1996–2024. The analysis also incorporates export diversification and economic growth to capture structural and macroeconomic dimensions influencing investment dynamics. Using panel data...
M. Abutalipov, D. Satybaldiyeva, A. Joldassov et al.· Bulletin of Toraighyrov Univ...· 0 citations
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