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.
Interdisciplinary Environmental Review, 2019 Vol.20 No.1, pp.73 - 82
Received: 21 Apr 2018
Accepted: 12 Dec 2018
Published online: 14 Mar 2019 *