Investment Inflows And Trade Affect Environmental Sustainability Essay

999 WordsSep 15, 20164 Pages
Investment inflows and trade affect environmental sustainability: Evidence from Panel data in Southeast Asia Abstract The inter-linkage between investment flows and trade and environmental sustainability is an extensively researched area. It has been marked that FDI is increasingly being directed to the developing countries in recent period, whose export basket is generally more intensive in primary products and manufacturing products. In this background, the recent study contributes to the existing merge of research by managing a panel data empirical analysis over 2000-2014 for Southeast Asian 9 countries to understand the relationship between investment flows and trade and environmental performance index (EPI) for countries. The regression results reveal that while environmental sustainability of countries is negatively related with merchandise export orientation and FDI outward movements, it is a positively manipulated by service exports. The findings also confirm a positive relationship between several politic economic factors (e.g. abundant democratic set up and lesser corruption) and environmental performance of countries. The empirical findings lend proof to the competition that investment flows and trade significantly affects environmental sustainability of Southeast Asia countries. Keywords Trade, Foreign Direct Investment, Environmental sustainability, Southeast Asia, Panel data Paper type Research paper 1. Introduction The international trade and
Open Document