The impact of foreign direct investment on carbon emissions: A comparative study in the ASEAN countries with the highest foreign direct investment

Abstract

The main objective of this study is to investigate the short- and long-term effects of Foreign Direct Investment (FDI) on CO2 in some ASEAN countries having high levels of FDI, including Singapore, Indonesia, Malaysia, and Vietnam. This study applied Autoregressive Distributed Lag (ARDL) analysis in estimating the short- and long-term relationship of FDI on CO2. The test results showed that the short-term positive impact of FDI on CO2 was shown in Singapore and Indonesia, while the negative effect was seen in Vietnam. In the long-term relationship, a positive impact was found in Vietnam and Singapore.

Keywords

• A10
• Q01