Proceedings of The 2nd International Conference on Applied Research in Business, Management and Economics
The Impact of Foreign Direct Investment on Environmental Degradation: A case study for Mauritius
Zeenat Didorally and Sheereen Fauzel
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.