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Income-FDI-Environmental degradation nexus for developing countries: A panel analysis of America continent

Khan, Hamad Hasul and Khan, Oshin (2018): Income-FDI-Environmental degradation nexus for developing countries: A panel analysis of America continent.

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Abstract

The study attempts to find out relationships among income, FDI and environmental degradation for developing countries of America continent. Moreover, study examines existence of environmental Kuznets curve and pollution haven hypothesis for developing countries of America continent. The study uses panel data from 1990 to 2014 for America continent and employs four techniques i-e pooled OLS, fixed effects (FEM), random effects (REM) and two stages least square (2SLS). Findings of the study do not confirm existence of both EKC and PHH for America continent. The study also concludes that energy use, population density, globalization and human capital have significant impact on environmental degradation in America continent. The study recommends that policies should target CO2 emissions reduction either by setting threshold or by penalizing pollution intensive industries. Further, cleaner energy and technological developments should be promoted.

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