The Examination of Relationship Between Foreign Direct Investments and Carbondioxide Emissions In Turkey with ARDL Approach

Abstract

Environment is one of the gripping topic with the importance of the protection of it for future generations. In recent years, greenhouse gas emissions are important threat for environment. Within greenhouse gas emissions, CO2 emissions takes big share. On the other hand, in the global World capital movements gain speed and foreign direct investment inflows gradually increase in Turkey. To this respect, we need to think about possible effects of these investments to environmental quality of country. In this sense, this paper examines the relationship between foreign direct investment inflows and CO2 emissions for Turkey. The study covers 1980-2011 period. The Bounds test developed by Pesaran et al. (2001) is applied to investigate the relationship between series for given period of time. According to bounds test results, there is no cointegration relationship between foreign direct investment inflows and CO2 series for Turkey. In other words, in the long term fdi inflows and CO2 emissions do not move together.

Keywords

• ardl
• carbondioxide emissions
• foreign direct investments