Next Article in Journal
Analyzing the Tourism–Energy–Growth Nexus for the Top 10 Most-Visited Countries
Previous Article in Journal
Stochastic Dominance and Omega Ratio: Measures to Examine Market Efficiency, Arbitrage Opportunity, and Anomaly
Previous Article in Special Issue
Labor Costs and Foreign Direct Investment: A Panel VAR Approach
Article Menu

Export Article

Open AccessArticle
Economies 2017, 5(4), 39; doi:10.3390/economies5040039

Does Foreign Direct Investment Harm the Environment in Developing Countries? Dynamic Panel Analysis of Latin American Countries

Department of Economics, University of Alaska, Fairbanks, AK 99775-6080, USA
Global Strategy Research Center, Korea Trade-Investment Promotion Agency, Seoul 06792, Korea
Author to whom correspondence should be addressed.
Academic Editor: Eric Rougier
Received: 12 September 2017 / Revised: 14 October 2017 / Accepted: 16 October 2017 / Published: 23 October 2017
(This article belongs to the Special Issue FDI and Development: Emerging Issues)
View Full-Text   |   Download PDF [211 KB, uploaded 23 October 2017]


This article sets out to study the FDI–environment nexus within a dynamic panel data framework. To that end, the pooled mean group (PMG) method of Pesaran et al. (1999) is used to assess the impact of FDI on CO2 emissions, controlling for income and energy consumption, using a panel of 17 Latin American countries. Our results using the full sample show that FDI increases CO2 emissions, confirming the pollution haven hypothesis. But when splitting the data into different income groups, FDI inflows only in high-income countries increase CO2 emissions. In addition, CO2 emissions with growth tend to increase monotonically within the full sample and middle-income countries. Finally, energy consumption is found to increase CO2 emissions in all cases: the full sample, high-, middle- and low-income countries. View Full-Text
Keywords: CO2 emissions; FDI; Latin America; panel analysis; PMG CO2 emissions; FDI; Latin America; panel analysis; PMG
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

Scifeed alert for new publications

Never miss any articles matching your research from any publisher
  • Get alerts for new papers matching your research
  • Find out the new papers from selected authors
  • Updated daily for 49'000+ journals and 6000+ publishers
  • Define your Scifeed now

SciFeed Share & Cite This Article

MDPI and ACS Style

Baek, J.; Choi, Y.J. Does Foreign Direct Investment Harm the Environment in Developing Countries? Dynamic Panel Analysis of Latin American Countries. Economies 2017, 5, 39.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics



[Return to top]
Economies EISSN 2227-7099 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top