An analysis of the Pollution Haven Hypothesis in the context of Turkey: A nonlinear approach
Foreign direct investment (FDI) is an important driver of countries’ economic development. Factors such as looser environmental regulations may cause dirty FDI to flow mainly to developing countries. This is explained by the Pollution Haven Hypothesis. The paper aims to investigate whether the Pollu...
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Format: | Article |
Language: | English |
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Sciendo
2022-04-01
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Series: | Economics and Business Review |
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Online Access: | https://doi.org/10.18559/ebr.2022.1.2 |
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author | Temurlenk M. Sinan Lögün Anıl |
author_facet | Temurlenk M. Sinan Lögün Anıl |
author_sort | Temurlenk M. Sinan |
collection | DOAJ |
description | Foreign direct investment (FDI) is an important driver of countries’ economic development. Factors such as looser environmental regulations may cause dirty FDI to flow mainly to developing countries. This is explained by the Pollution Haven Hypothesis. The paper aims to investigate whether the Pollution Haven Hypothesis is valid in Turkey using the nonlinear autoregressive distributed lag (NARDL) approach for the period 1974–2017. The results show that FDI inflows and carbon emissions have asymmetric effects in both the short and long term for Turkey, supporting the Pollution Haven Hypothesis. Furthermore, there is a link between carbon emissions and trade openness, manufacturing and economic growth. Policymakers should develop the policies necessary to transfer clean technologies to Turkey by providing improvements and technical advances for a more efficient energy use. |
first_indexed | 2024-12-12T05:00:39Z |
format | Article |
id | doaj.art-562f3eaf81484a27b27f9c03520a515d |
institution | Directory Open Access Journal |
issn | 2450-0097 |
language | English |
last_indexed | 2024-12-12T05:00:39Z |
publishDate | 2022-04-01 |
publisher | Sciendo |
record_format | Article |
series | Economics and Business Review |
spelling | doaj.art-562f3eaf81484a27b27f9c03520a515d2022-12-22T00:37:14ZengSciendoEconomics and Business Review2450-00972022-04-018152310.18559/ebr.2022.1.2An analysis of the Pollution Haven Hypothesis in the context of Turkey: A nonlinear approachTemurlenk M. Sinan0Lögün Anıl1Atatürk University, Faculty of Economics and Administrative Sciences, Department of Econometrics, 25240, Erzurum, TurkeyAtatürk University, Faculty of Economics and Administrative Sciences, Department of Econometrics, 25240, Erzurum, TurkeyForeign direct investment (FDI) is an important driver of countries’ economic development. Factors such as looser environmental regulations may cause dirty FDI to flow mainly to developing countries. This is explained by the Pollution Haven Hypothesis. The paper aims to investigate whether the Pollution Haven Hypothesis is valid in Turkey using the nonlinear autoregressive distributed lag (NARDL) approach for the period 1974–2017. The results show that FDI inflows and carbon emissions have asymmetric effects in both the short and long term for Turkey, supporting the Pollution Haven Hypothesis. Furthermore, there is a link between carbon emissions and trade openness, manufacturing and economic growth. Policymakers should develop the policies necessary to transfer clean technologies to Turkey by providing improvements and technical advances for a more efficient energy use.https://doi.org/10.18559/ebr.2022.1.2pollution haven hypothesisforeign direct investments (fdi)emissionsnonlinear autoregressive distributed lag modelturkeyc33e1q52 |
spellingShingle | Temurlenk M. Sinan Lögün Anıl An analysis of the Pollution Haven Hypothesis in the context of Turkey: A nonlinear approach Economics and Business Review pollution haven hypothesis foreign direct investments (fdi) emissions nonlinear autoregressive distributed lag model turkey c33 e1 q52 |
title | An analysis of the Pollution Haven Hypothesis in the context of Turkey: A nonlinear approach |
title_full | An analysis of the Pollution Haven Hypothesis in the context of Turkey: A nonlinear approach |
title_fullStr | An analysis of the Pollution Haven Hypothesis in the context of Turkey: A nonlinear approach |
title_full_unstemmed | An analysis of the Pollution Haven Hypothesis in the context of Turkey: A nonlinear approach |
title_short | An analysis of the Pollution Haven Hypothesis in the context of Turkey: A nonlinear approach |
title_sort | analysis of the pollution haven hypothesis in the context of turkey a nonlinear approach |
topic | pollution haven hypothesis foreign direct investments (fdi) emissions nonlinear autoregressive distributed lag model turkey c33 e1 q52 |
url | https://doi.org/10.18559/ebr.2022.1.2 |
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