The Impact of FDI on CO2 Emissions in Latin America

Posted: 2 Jul 2014

See all articles by Luisa R. Blanco

Luisa R. Blanco

Pepperdine University School of Public Policy

Fidel Gonzalez

Sam Houston State University - College of Business Administration - Department of Economics and International Business

Isabel Ruiz

University of Oxford - Harris Manchester College

Date Written: 2013

Abstract

This paper uses panel Granger causality tests to study the relationship between sector specific FDI and CO2 emissions. Using a sample of 18 Latin American countries for the 1980-2007 period, we find causality running from FDI in polluting intensive industries (“the dirty sector”) to CO2 emissions per capita. This result is robust to controlling for other factors associated with CO2 emissions and using the ratio of CO2 emissions to GDP. For other sectors, we find no robust evidence that FDI causes CO2 emissions.

Keywords: FDI, Pollution, Latin America

JEL Classification: F21, Q50

Suggested Citation

Blanco, Luisa R. and Gonzalez, Fidel and Ruiz, Isabel, The Impact of FDI on CO2 Emissions in Latin America (2013). Oxford Development Studies, 14(1), 104-121, March 2013. Available at SSRN: https://ssrn.com/abstract=2461035

Luisa R. Blanco (Contact Author)

Pepperdine University School of Public Policy ( email )

24255 Pacific Coast Highway
Malibu, CA 90263
United States

Fidel Gonzalez

Sam Houston State University - College of Business Administration - Department of Economics and International Business ( email )

Huntsville, TX 77341-2118
United States

Isabel Ruiz

University of Oxford - Harris Manchester College ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

HOME PAGE: http://www.economics.ox.ac.uk/index.php/staff/ruiz/

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