The environmental impact of industrialization and foreign direct investment

Eric Evans Osei Opoku, Micheal Kofi Boachie

Research output: Journal PublicationArticlepeer-review

60 Citations (Scopus)

Abstract

In recent years, the major concern about the environment has been the emissions of greenhouse gases and the consequent impact on climate change. There is a huge interest among scholars in examining factors that contribute to environmental degradation. In this study, we examined the environmental impact of foreign direct investment and industrialization in 36 selected African countries using data for the period 1980–2014. We proxied the environment with a number of factors including carbon dioxide, nitrous oxide, methane, and total greenhouse gases emissions. Employing the Pooled Mean Group estimation technique, we found that the effect of industrialization on the environment is generally insignificant. However, the effect of foreign direct investment on the environment is found to be largely significant. Policy implications of these findings are discussed.

Original languageEnglish
Article number111178
JournalEnergy Policy
Volume137
DOIs
Publication statusPublished - Feb 2020
Externally publishedYes

Keywords

  • Africa
  • Emissions
  • Environment
  • Foreign direct investment
  • Industrialization

ASJC Scopus subject areas

  • Energy (all)
  • Management, Monitoring, Policy and Law

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