Abstract
In this study, it was aimed to investigate the effect of foreign direct investment (FDI) and trade openness (TO) on environmental pollution. The study was conducted on Emerging Market Economies (EMEs), which are subject to flexible practices and conditions to attract trade and investment. The 1990-2020 data of 15 countries included in the IMF's EMEs category were tested with the following methods: The cross-sectional autoregressive distributed lag estimator (CS ARDL), Main Group (MG), Common Correlated Effects Mean Group Estimators (CCE), Augmented Mean Group (AMG), Emirmahmutoğlu and Köse (2011) Causality Test. The variables used were FDI, TO, GDP per capita and carbon dioxide (CO2) emissions. According to the results of the coefficient estimators, it was found that only GDP had a significant and positive effect on CO2 in both the short and long term, and there was no significant relationship between FDI-CO2 and TO-CO2. According to the causality test results, it was determined that there is a unidirectional relationship from CO2 to FDI and from TO to CO2, and a bidirectional relationship between GDP and CO2.
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