{"title":"Dynamic Effects of Economic Growth, Foreign Direct Investment, and Trade Openness on Environmental Quality: Evidence From Asian Economies","authors":"R. Hossain, Chandan Kumar Roy, Rima Akter","doi":"10.15179/ces.25.1.3","DOIUrl":null,"url":null,"abstract":"The main purpose of this article is to investigate the impact of economic growth, foreign direct investment (FDI), and trade openness (TO), and the Asian and global financial crisis on environmental quality based on the environmental Kuznets curve (EKC) hypothesis on panel data of 32 Asian economies over the 1991–2019 period. Our study supports the EKC hypothesis, implying that economic growth increases emissions to a certain point, after which growth helps reduce carbon emissions. By employing several panel data econometric estimation techniques (such as ordinary least squares, fixed effects models, and difference-generalized method of moments estimations), the study also shows robust findings that FDI could reduce carbon emissions in the Asian region by welcoming environmentally friendly technology and know-how into the economy. However, though the study finds that financial crises reduce emissions in Asian countries, the increase of TO in this region leads to an increase in emissions and causes of environmental degradation. Thus, to ensure environmental sustainability, Asian policymakers should formulate lucrative policies to attract FDI, and trade policies should also be revised.","PeriodicalId":42059,"journal":{"name":"Croatian Economic Survey","volume":null,"pages":null},"PeriodicalIF":0.4000,"publicationDate":"2023-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Croatian Economic Survey","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.15179/ces.25.1.3","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
The main purpose of this article is to investigate the impact of economic growth, foreign direct investment (FDI), and trade openness (TO), and the Asian and global financial crisis on environmental quality based on the environmental Kuznets curve (EKC) hypothesis on panel data of 32 Asian economies over the 1991–2019 period. Our study supports the EKC hypothesis, implying that economic growth increases emissions to a certain point, after which growth helps reduce carbon emissions. By employing several panel data econometric estimation techniques (such as ordinary least squares, fixed effects models, and difference-generalized method of moments estimations), the study also shows robust findings that FDI could reduce carbon emissions in the Asian region by welcoming environmentally friendly technology and know-how into the economy. However, though the study finds that financial crises reduce emissions in Asian countries, the increase of TO in this region leads to an increase in emissions and causes of environmental degradation. Thus, to ensure environmental sustainability, Asian policymakers should formulate lucrative policies to attract FDI, and trade policies should also be revised.
期刊介绍:
The journal Croatian Economic Survey is a Diamond Open Access journal defined by the following characteristics: -Peer review: the article goes through the journal''s process of a double-blind peer review. -Public access: both the author and the public have immediate access to the final, published version of the article. -Funding model: both the author and the public pay no fee to the journal. The journal is financially supported by the Ministry of Science and Education of the Republic of Croatia. Croatian Economic Survey is an English-language, peer-reviewed scholarly journal published by the Institute of Economics, Zagreb in Croatia and financed by the Croatian Ministry of Science and Education. The journal aims to serve as a forum for academics and practitioners by publishing high-quality research papers on topics in all areas of economics. Special focus is given to post-socialist Europe. Comparative studies are especially encouraged, since these countries share a similar socio-economic background and comparative studies offer a valuable source of insight for policy formulation as well as a basis for competitive benchmarking. The journal welcomes empirical and policy-oriented papers relevant to a broader international audience. Contributions need not be limited solely to economics; submissions from other related disciplines are encouraged.