Abstract
This paper replicates estimates according to Sapkota and Bastola (2017) and provides additional insights for the relationship between Foreign Direct Investment (FDI), income and environmental pollution in Latin America. To this end, we address the heterogeneity in terms of economic development and environmental pollution, heterogeneity that characterize the retained group of countries. Our panel quantiles regression analysis, conducted for 14 Latin America countries over the period 1980 to 2010, shows that FDI has no clear impact on pollution, while the EKC hypothesis is called into question for the low-income group of countries. While our results partially validate the Environmental Kuznets Curve (EKC) hypothesis, they contrast with those reported by Sapkota and Bastola (2017) for the Pollution Haven Hypothesis (PHH).
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