Impact of foreign direct investment and urbanisation on CO2 emissions in Vietnam Online publication date: Fri, 26-Feb-2021
by Ho Thuy Ngoc; Bui Anh Tuan; Nguyen Van Duy; Dao Trung Kien; Nguyen Ngoc Dat
International Journal of Business and Globalisation (IJBG), Vol. 27, No. 3, 2021
Abstract: Vietnam is considered one of the countries mostly affected by climate change due to CO2 emissions. Urbanisation and foreign direct investment have been argued to be main causes. This study examines the impact of foreign direct investment and urbanisation on CO2 emissions in Vietnam by applying the autoregressive distributed lag (ARDL) model, testing reliability and correcting model. The research data was collected from the World Bank's tracking database between 1985 and 2016. The causal relationship among variables shows the impacts in short run and long run are different. We find that the relation between urbanisation and CO2 emissions has changed from U-shaped in short-term with the optimal lag 2 into inverse U-shape in long-term. We realise that foreign direct investment is positively related to CO2 emission in short run while there is no such effect in the long run. Conclusions and policy implication for Vietnam are given accordingly.
Online publication date: Fri, 26-Feb-2021
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business and Globalisation (IJBG):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email firstname.lastname@example.org