Fdi, Growth And The Environment: Evidence From India On Co2 Emission During The Last Two Decades

By Joysri Acharyya. 2009

339 citations recorded by the source corpus.

This paper examines two most important benefits and costs of foreign direct investment in the Indian context - GDP growth and the environment degradation. We find a statistically significant long run positive, but marginal, impact of FDI inflow on GDP growth in India during 1980-2003. On the other hand, the long run growth impact of FDI inflow on CO2 emissions is quite large. The actual impact on the environment, however, may be larger because CO2 emission is one of the many pollutants generated by economic activities. But CO2 being a global air pollutant, our finding has some far reaching implications for the global environment as well, with India having emerged as the fourth highest in the global ranking of CO2 emissions by turn of this century.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/c09c5e340a294755ffa90d664cb98e7cf53c2c6b

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Citations in the corpus

Export diversification, composition, and economic growth: Evidence from cross-country analysis (2013, methodology): “A similar two-stage approach has been used by Acharyya (2009) to estimate the long run effects of FDI inflow on CO2 emission in India through its GDP growth effect.”
The world trade network and the environment (2015, result): “However, our results also support the PHH in the case of low-income countries, as Acharyya (2009) does in the case of India.”
Dynamic causality testing for EKC hypothesis, pollution haven hypothesis and international trade in India (2018, background): “The causality found from FDI to CO2 emissions is in line with the findings of Acharyya (2009) and Rana and Sharma (forthcoming).”
Investigation of the environmental Kuznets curve for carbon emissions in Malaysia: Do foreign direct investment and trade matter? (2014, background): “In their studies, Jensen (1996), Acharyya (2009) find that even though FDI can contribute to better economic growth, it may cause more industrial pollution and environmental degradation.”
The relationship between Co2 emissions, energy consumption, economic growth and FDI: the case of Turkey (2016, background): “…addition, polluting firms may choose to invest in developing countries that have insufficient environmental regulations in order to minimize production costs, which also leads to an increase in the level of energy consumption in the country (Jensen 1996; Acharyya 2009; Lau, Choong, and Eng 2014 ).”
Effect of tourism on environmental pollution: Further evidence from Malaysia, Singapore and Thailand (2018, neutral): “Beladi et al. (2009) in their study examined a small open economy dealing with tourism 1 Following the studies of Acharyya (2009), Azam (2016) and Zheng and Sheng (2017), where they also measured environmental pollution/degradation by CO2 emissions. related taxes in the form of pollution tax.”