THE POLLUTION HAVEN HYPOTHESIS AND FOREIGN DIRECT INVESTMENTS: EVIDENCE FROM THE CENTRAL ASIAN TURKIC REPUBLICS

Authors : Nalan ISIK

Pages : 34-50

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Publication Date : 2019-01-15

Article Type : Research Paper

Abstract :In recent years, the Central Asian Turkic Republics have started to become  centers of attraction for the foreign direct investments of multinational companies.  In the literature, it is a matter of debate whether the relocation of  multinational companies with low environmental standards increases environmental  pollution associated with foreign direct investments. In this context,  this study aims to investigate the relationship between carbon dioxide  insert ignore into journalissuearticles values(CO2); emissions and foreign direct investments in the Central Asian Turkic  Republics. For that purpose, a panel co-integration test was applied to the  CO2 emission rate and foreign direct investment data in six Turkic Republics  insert ignore into journalissuearticles values(Azerbaijan, Kyrgyzstan, Kazakhstan, Turkey, Turkmenistan and Uzbekistan);  in the period between 1995-2016. The long-term co-integration coefficients  of variables were examined with the panel dynamic least squares method  across the panel. The empirical estimation results demonstrate that foreign  direct investments and CO2 emissions have a long-term positive and significant  relationship.
Keywords : pollution haven hypothesis, foreign direct investments, Turkic republics, panel data analysis, CO2 emissions