Abstract
The purpose of this study is to investigate the relationships among Foreign Direct Investment (FDI) inflows, Carbon Dioxide (CO2) emissions, and economic growth in terms of Gross Domestic Product (GDP) for Turkey over the period of 1987Q1–2009Q4. The cointegration analyses suggest that there is a stable long-run equilibrium relationship among the variables under consideration and the results of the Granger causality test, produced from the error-correction model (ECM), show that there is a causal relationship between the variables and lends support to the pollution-haven hypothesis. However, there appears to be no evidence of FDI-led growth in the data.
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