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Foreign direct investment, pollution and economic growth: evidence from Malaysia

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Abstract:

The bounds test developed by Pesaran et al. (2001) is applied to examine the existence of a long-run relationship between foreign direct investment (FDI) inflows, pollution and output of Malaysia. Granger causality tests are also utilized to test for the presence of the short-run and long-run causal relationship between these variables. Both FDI inflows and pollution have short-run causal relationship on output. Output only has long-run causal relationship on FDI inflows.

Document Type: Research Article

DOI: https://doi.org/10.1080/00036840701564376

Affiliations: Nottingham University Business School, The University of Nottingham Malaysia Campus, Selangor Darul Ehsan, Malaysia

Publication date: 2009-05-01

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