A Dynamic Approach to the FDI-Environment Nexus: The Case of China and India
Preprint
- 31 December 2009
- preprint
- Published by Elsevier BV in SSRN Electronic Journal
Abstract
An autoregressive distributed lag (ARDL) model is applied to examine the short and long-run relationships among foreign direct investment (FDI), economic growth, and the environment in China and India. We find that, for China, FDI tends to deteriorate environmental quality in both the short- and long-run. For India, on the other hand, FDI is found to have a detrimental effect on the environment in the short-run, but has little effect in the long-run. Finally, it is found that income growth in both countries tends to worsen the environment in both short- and long-run.This publication has 29 references indexed in Scilit:
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