Globalization, Foreign Direct Investment, and Climate Change

Abstract There has been a dramatic increase in the long-term accumulation of foreign direct investment ( FDI ) in less-developed countries from 1980–2018. Scholars argue that these processes have harmful effects on climate change-inducing emissions. Here, the author argues that such expansions have beneficial impacts. He empirically evaluates such theorization using fixed effects ( FE ) panel regression models. Results provide support for his view. These results suggest that the long-term accumulation of foreign direct investment in less-developed countries has beneficial implications for the scale, intensity, and ecoefficiency of carbon dioxide emissions.