Analysis of the Relationship between Foreign Direct Investment, Economic Growth and Carbon Emissions in Terms of Green and Brown Field Investments

Davut Kazaz; Meltem Okur Dinçsoy; Umut Erksan Şenalp

Makale detayları

Analysis of the Relationship between Foreign Direct Investment, Economic Growth and Carbon Emissions in Terms of Green and Brown Field Investments

Yazarlar:

Davut Kazaz | Meltem Okur Dinçsoy | Umut Erksan Şenalp

Yayıncı:

Trakya University

Dergi:

Trakya Üniversitesi Sosyal Bilimler Dergisi Vol.25 Issue Özel Sayı, pp.429-446

Belge Tipi:

Makale

Yayın Tarihi:

9/2023

Belge Dili:

Türkçe

Document ID (Org No.):

2001298064

pISSN:

1305-7766

Anahtar kelimeler:

Özet:

 Developing countries are strongly interested in attracting foreign direct investment to improve the lack of capital and finance economic growth. To do this, they usually implement less stringent environmental policies for foreign investment. However, this strategy comes with the expense of more pollution and environmental disasters in some cases. This study aims to reveal the relationship between foreign investment, growth, and environmental pollution. However, the type of investment matters when it comes to pollution. Thus, we consider the components of foreign investment as greenfield and brownfield investments, where the former is an investment made from scratch and the latter is a purchase of an existing firm. The empirical analysis covers the period between 1990 and 2020. The primary data sources are the World Bank and OECD. We used three VAR models to investigate the effects of greenfield and brownfield investments on carbon emission and growth. We highlight that the change in total foreign direct investment and greenfield variables was statistically significant in explaining the change in CO2 emissions, but brownfield investments were found to be statistically insignificant in explaining CO2 emissions.

 Developing countries are strongly interested in attracting foreign direct investment to improve the lack of capital and finance economic growth. To do this, they usually implement less stringent environmental policies for foreign investment. However, this strategy comes with the expense of more pollution and environmental disasters in some cases. This study aims to reveal the relationship between foreign investment, growth, and environmental pollution. However, the type of investment matters when it comes to pollution. Thus, we consider the components of foreign investment as greenfield and brownfield investments, where the former is an investment made from scratch and the latter is a purchase of an existing firm. The empirical analysis covers the period between 1990 and 2020. The primary data sources are the World Bank and OECD. We used three VAR models to investigate the effects of greenfield and brownfield investments on carbon emission and growth. We highlight that the change in total foreign direct investment and greenfield variables was statistically significant in explaining the change in CO2 emissions, but brownfield investments were found to be statistically insignificant in explaining CO2 emissions.

 Developing countries are strongly interested in attracting foreign direct investment to improve the lack of capital and finance economic growth. To do this, they usually implement less stringent environmental policies for foreign investment. However, this strategy comes with the expense of more pollution and environmental disasters in some cases. This study aims to reveal the relationship between foreign investment, growth, and environmental pollution. However, the type of investment matters when it comes to pollution. Thus, we consider the components of foreign investment as greenfield and brownfield investments, where the former is an investment made from scratch and the latter is a purchase of an existing firm. The empirical analysis covers the period between 1990 and 2020. The primary data sources are the World Bank and OECD. We used three VAR models to investigate the effects of greenfield and brownfield investments on carbon emission and growth. We highlight that the change in total foreign direct investment and greenfield variables was statistically significant in explaining the change in CO2 emissions, but brownfield investments were found to be statistically insignificant in explaining CO2 emissions.

 Gelişmekte olan ülkeler, sermaye yetersizliğini gidermek ve ekonomik büyümeyi finanse etmek için doğrudan yabancı yatırımı çekmeye çalışmaktadır. Bunu yapmak için, genellikle yabancı yatırım için daha az katı çevre politikaları uygularlar. Ancak, bu strateji bazı durumlarda daha fazla kirlilik ve çevre felaketlerine neden olabilmektedir. Bu çalışma, yabancı yatırım, büyüme ve çevre kirliliği arasındaki ilişkiyi ortaya koymayı amaçlamaktadır. Ancak konu kirlilik olduğunda yatırımın türü önemlidir. Bu nedenle, yabancı yatırımın bileşenlerini yeşil alan yatırım ve kahverengi alan yatırımları olarak değerlendiriyoruz. Yeşil alan yatırımlar sıfırdan yapılan yatırımları kapsarken, kahverengi alan yatırımlar mevcut bir firmanın satın alınmasını ifade etmektedir. Ampirik analiz 1990 ile 2020 arasındaki dönemi kapsamaktadır. Birincil veri kaynakları olarak Dünya Bankası ve OECD kullanılmıştır. Yeşil alan ve kahverengi alan yatırımlarının karbon emisyonu ve büyüme üzerindeki etkilerini araştırmak için üç VAR modeli kullandık. Gerçekleştirilen analizler sonucunda, toplam doğrudan yabancı yatırım ve yeşil alan değişkenlerindeki değişimin, CO2 emisyonunda meydana gelen değişimi açıklamakta istatistiksel olarak anlamlı ancak kahverengi alan yatırımlarının CO2 emisyonunu açıklamakta istatistiksel olarak anlamsız olduğu tespit edilmiştir.

Makale detayları

Analysis of the Relationship between Foreign Direct Investment, Economic Growth and Carbon Emissions in Terms of Green and Brown Field Investments

Yazarlar:

Davut Kazaz | Meltem Okur Dinçsoy | Umut Erksan Şenalp

Yayıncı:

Trakya University

Dergi:

Trakya Üniversitesi Sosyal Bilimler Dergisi Vol.25 Issue Özel Sayı, pp.429-446

Belge Tipi:

Makale

Yayın Tarihi:

9/2023

Belge Dili:

Türkçe

Document ID (Org No.):

2001298064

pISSN:

1305-7766

Foreign Direct Investments

Economic Growth

Carbon Dioxide Emissions

Pollution

Green and Brown FieldDoğrudan Yabancı Yatırımlar

Ekonomik Büyüme

Karbondioksit Emisyonu

Çevre Kirliliği

Yeşil ve Kahverengi Alan

Foreign Direct Investments

Economic Growth

Carbon Dioxide Emissions

Pollution

Green and Brown Field

Sayı

Makale detayları

Yazarlar: Davut Kazaz | Meltem Okur Dinçsoy | Umut Erksan Şenalp

Yayıncı: Trakya University

Dergi: Trakya Üniversitesi Sosyal Bilimler Dergisi Vol.25 Issue Özel Sayı, pp.429-446

Belge Tipi: Makale

Yayın Tarihi: 9/2023

Belge Dili: Türkçe

Document ID (Org No.): 2001298064

pISSN: 1305-7766

Sayı

Yazarlar:

Davut Kazaz | Meltem Okur Dinçsoy | Umut Erksan Şenalp

Yayıncı:

Trakya University

Dergi:

Trakya Üniversitesi Sosyal Bilimler Dergisi Vol.25 Issue Özel Sayı, pp.429-446

Belge Tipi:

Makale

Yayın Tarihi:

9/2023

Belge Dili:

Türkçe

Document ID (Org No.):

2001298064

pISSN:

1305-7766