Title: International trade, foreign direct investment, economic growth and CO₂ emissions: a study of India

Authors: Ritu Rana; Manoj Sharma

Addresses: Department of Management and Humanities, National Institute of Technology Hamirpur, H.P., 177005, India ' Department of Management and Humanities, National Institute of Technology Hamirpur, H.P., 177005, India

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.

Keywords: foreign direct investment; FDI; environmental Kuznets curve hypothesis; N-shaped curve; CO₂ emissions; cubic regression; India.

DOI: 10.1504/IER.2019.098349

Interdisciplinary Environmental Review, 2019 Vol.20 No.1, pp.73 - 82

Received: 21 Apr 2018
Accepted: 12 Dec 2018
Published online: 14 Mar 2019 *

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