Proceedings of The 2nd International Conference on Applied Research in Business, Management and Economics
Year: 2020
DOI: https://www.doi.org/10.33422/2nd.bmeconf.2020.09.225
The Impact of Foreign Direct Investment on Environmental Degradation: A case study for Mauritius
Zeenat Didorally and Sheereen Fauzel
ABSTRACT:
The main aim of carrying out this research is to study the impact of foreign direct investment on environmental degradation in Mauritius for a time period from 1976 to 2018. The time series data was used to assess the impact and a Vector Error Correction Model (VECM) was used to estimate the short-run and long-run relationships. To measure environmental degradation in this study, the level of carbon dioxide is being used as a proxy. The findings of this research reveal that the influence of foreign direct investment on environmental degradation is positive and significant in the long-run.
Keywords: Foreign Direct Investment, Carbon Dioxide emission, time series data, VECM.