FDI-pollution Nexus: The Role of Corruption

DOI

10.2991/piceeba2-18.2019.121How to use a DOI?

Keywords

foreign direct investment; pollution; corruption; pollution heaven hypothesis; threshold

Abstract

This study aims to re-investigate the Pollution Haven Hypothesis (PHH) by analyzing the role of corruption. We argue that the impact of foreign direct investment (FDI) on pollution in the host country is contingent on the level of corruption of the host country. By using a sample of 70 developing countries, the findings reveal that FDI do not directly influencecarbon dioxide (CO2) emission.However, further investigation using threshold regression analysis uncovers that PHH only exist in countries with high level of corruption. In other words, corrupted countries absorb“dirty” FDI and thereforegenerate more pollution than less corrupted countries.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - W.N.W Azman Saini
AU  - Yin-Li Tun
PY  - 2019/04
DA  - 2019/04
TI  - FDI-pollution Nexus: The Role of Corruption
BT  - Proceedings of the 2nd Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2018)
PB  - Atlantis Press
SP  - 961
EP  - 974
SN  - 2352-5428
UR  - https://doi.org/10.2991/piceeba2-18.2019.121
DO  - 10.2991/piceeba2-18.2019.121
ID  - Saini2019/04
ER  -