Logo
Munich Personal RePEc Archive

Does institutional quality mitigate the effect of Foreign Direct Investment on environmental quality: Evidence of MENA countries

bouchoucha, najeh (2021): Does institutional quality mitigate the effect of Foreign Direct Investment on environmental quality: Evidence of MENA countries.

[img]
Preview
PDF
MPRA_paper_110005.pdf

Download (919kB) | Preview

Abstract

The purpose of this study is to examine the interaction effects of Foreign Direct investment and institutional quality on environmental degradation in 17 Middle East and North African (MENA). We use ordinary least squares (OLS), Fixed effects (FE) random effects (RE) and system generalized method of moments (GMM) for the period 1996–2018. Six dimensions of governance are used : control of corruption, a sound voice and accountability, rule of Law, regulatory Quality, Govenance effectiviness and Political Stability. First, our findings show that FDI increases CO2 emissions in the MENA countries. Second, the effect of FDI on environmental degradation can be ameliorated through the presence of good institutional quality. In fact, FDI accompagnied by good governance could reduce the adverse effects of co2 emissions in MENA countries. Therefore, MENA countries should implement efficiently good institutions that will help to reduce carbon dioxide emissions.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.