Abstract
This study analyzes the effects of foreign direct investment (FDI), economic growth, industrial structure, renewable and nuclear energy, and urbanization on Korean greenhouse gas (GHG) emissions from 1981 to 2014. The cointegration relationship of the variables is examined using autoregressive distributed lag (ARDL) bounds test. The test confirmed the long-run equilibrium among the variables. After that, the short-run and long-run coefficients are estimated by an ARDL error-correction model. The result shows that in the long run, economic growth and urbanization are the main contributors to the increase of GHG emissions, while manufacturing industry share, renewable energy and nuclear energy contributed to the reduction of GHG emissions. The inflow of FDI has led to the increase of greenhouse gases, but the coefficients is negligible. In the short run, economic growth has caused an increase in GHG emissions, while renewable and nuclear energy have contributed to the reduction in GHG emissions. FDI and urbanization did not play a role in increasing of GHG emissions in the short term.
Highlights
Today, greenhouse gas (GHG) emissions are continuously increasing worldwide, there are different trends across countries
The damage caused by abnormal climate change due to global warming is increasing with the increase in GHG emissions
The autoregressive distributed lag (ARDL) method is used as in Tang and Tan [6], Mert and Bölök [7], Ali [16], Iwata et al [23], and Fernández and Fernández [30]. This method has been widely used in recent studies as it can produce significant results even when sample size is small in case of one country. This is the first study to analyze the effect of foreign direct investment (FDI) on GHG emissions incorporating economic growth, the share of the manufacturing industry, the share of renewable and nuclear power generation, and urbanization using the Autoregressive distributed lags (ARDL) method
Summary
Greenhouse gas (GHG) emissions are continuously increasing worldwide, there are different trends across countries. There is a possibility that foreign direct investment (FDI) is a conduit for pollution havens This is likely to be linked to economic growth in each country and affect the country’s GHG emissions. The pollution haven hypothesis proposes that the investing country relocates GHG intensive industries to foreign countries, thereby increasing the GHG emissions of the host countries. Recent studies supporting the pollution haven hypothesis include Pao and Tsai [2], Seker et al [3], Zhu et al [4], and Behera and Dash [5], and the studies supporting the halo effect hypothesis include Tang and Tan [6], Mert and Bölök [7], and Abdouli and Hammami [8]. Vietnam 21 Kyoto Annex I Countries MENA (Middle Eastern and North African), 17 countries Malaysia, Thailand, Indonesia, Singapore, Philippines
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
