Environmental Quality and Growth Effects of Foreign Direct Investment in Nigeria
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Date
2016
Authors
Saibu, O.M.
Mesagan, E.p.
Journal Title
Journal ISSN
Volume Title
Publisher
Iranian Journal of Economics
Abstract
The study examines the growth effects of foreign direct investment on environmental quality in Nigeria between 1970 and 2013. Variables like per capita income, environmental degradation, foreign direct investment, human capital, inflation, trade openness, interest rate, and the interaction term between foreign direct investment and carbon emission were employed in the study. A long run relationship was observed among the variables and foreign direct investment and
environmental degradation negatively enhanced growth individually, while the interaction variable positively enhanced economic growth. The study concludes that environmental consideration does not really matter in growth consideration in Nigeria but that carbon emission must not exceed the 67.4% threshold if the economy is to benefit from the
interaction between foreign direct investment and carbon emission. Policy makers are encouraged to strike a balance between the quantity of emissions and the amount of economic growth that is suitable for the country since the decision to maintain green growth by developing countries is not an easy one to make.
Description
Scholarly articles
Keywords
Environment , Economic Growth , Threshold , Foreign Direct Investment , Research Subject Categories::SOCIAL SCIENCES::Business and economics::Economics
Citation
Saibu M.O and Mesagan E P (2016) “Environmental Quality and Growth Effects of Foreign Direct Investment in Nigeria” Iranian Journal of Economics Vol. 20, No. 2, 2016. pp. 125-140