Causal interaction between FDI, corruption and environmental quality in the MENA region

The present work analyzes the impact of foreign direct investment (FDI) and corruption on the quality of the environment in the MENA region. Indeed, the magnitude of corruption and the quality of institutions are often cited as the main factors affecting the FDI inflow. Here, the Autoregressive Dist...

Full description

Saved in:
Bibliographic Details
Published in:Economies 2021-03, Vol.9 (1), p.1-12
Main Authors: Bardi, Wajdi, Hfaiedh, Mohamed Ali
Format: Article
Language:English
Subjects:
Autoregressive Distributed Lag
Carbon dioxide
Corruption
Developing countries
Economic growth
Emission standards
Emissions
Energy consumption
Environmental impact
Environmental Kuznets Curve
Environmental policy
Environmental quality
Environmental regulations
foreign direct investment
Fossil fuels
GDP
Gross Domestic Product
Human capital
Hypotheses
Industrialized nations
Investments
LDCs
Pollution
Regulation
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The present work analyzes the impact of foreign direct investment (FDI) and corruption on the quality of the environment in the MENA region. Indeed, the magnitude of corruption and the quality of institutions are often cited as the main factors affecting the FDI inflow. Here, the Autoregressive Distributed Lag (ARDL) approach was used to examine data on a group of MENA countries from 1990 to 2016. Our findings verify the Environmental Kuznets Curve. Furthermore, the empirical estimates approve the "pollution haven" hypothesis, which postulates that the polluting industrial activities of developed countries shift to developing countries which have less stringent environmental regulations. Based on the study findings, we recommend greater awareness of the harmful effects of corruption among political and economic actors.
ISSN:2227-7099
2227-7099
DOI:10.3390/economies9010014