International trade, foreign direct investment, economic growth and CO2 emissions: a study of India
by Ritu Rana; Manoj Sharma
Interdisciplinary Environmental Review (IER), Vol. 20, No. 1, 2019

Abstract: This paper examines the relationship of CO2 emissions with economic growth (EG); foreign direct investment (FDI); and international trade indicators, i.e., imports and exports; in Indian context. Johansen cointegration methodology is used to examine the existence of long-run relationship between variables. Results indicate the existence of an inverted U-shaped curve in India, i.e., the EKC hypothesis and of the N-shaped curve too, as far as the CO2-EG relationship is concerned. Results also indicate that FDI is one of the determinants of CO2 emissions in India. Imports have negative effects on CO2 emissions, while exports contribute to CO2 emissions in India.

Online publication date: Thu, 14-Mar-2019

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