Globalization, Foreign Direct Investment, and Climate Change

Abstract

Abstract There has been a dramatic increase in the long-term accumulation of foreign direct investment (FDI) in less-developed countries from 1980–2018. Scholars argue that these processes have harmful effects on climate change-inducing emissions. Here, the author argues that such expansions have beneficial impacts. He empirically evaluates such theorization using fixed effects (FE) panel regression models. Results provide support for his view. These results suggest that the long-term accumulation of foreign direct investment in less-developed countries has beneficial implications for the scale, intensity, and ecoefficiency of carbon dioxide emissions.