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What is Capital Inflows

Chapter 6
Handbook of Research on Economic and Political Implications of Green Trading and Energy Use
It refers to movement of funds from a source country into a host country for the purpose of investment, trade or business production.
Published in Chapter:
Economic Growth and Environmental Impacts of Foreign Direct Investment in Emerging Market Economies
Adem Gök (Kırklareli University, Turkey)
Copyright: © 2019 |Pages: 16
DOI: 10.4018/978-1-5225-8547-3.ch006
Abstract
The chapter investigates the role of FDI on growth, the role of FDI on environmental quality, and the role of environmental quality on FDI in 23 emerging market economies over the period of 1993-2014 by panel VAR analysis. It observes that FDI contributes to economic growth and environmental degradation in emerging market economies. In addition, environmental degradation attracts FDI inflows into host emerging market economies. The results support pollution haven hypothesis and contradict pollution halo hypothesis.
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