The Role of Economic Growth, Foreign Direct Investment in Determining Environmental Degradation: A Panel Data Analysis

Abstract

This research examines the intricate non-linear connection between foreign direct investment and environmental degradation, leveraging panel data encompassing 110 economies from both developed and developing regions. Employing a rigorous analytical approach, the study investigates the existence of an environmental Kuznets curve, unraveling the nuanced impact of foreign direct investment on environmental degradation. The discerned outcomes not only affirm the presence of such a curve but also shed light on a noteworthy trend: the positive association between foreign direct investment and increased environmental degradation. Moreover, an in-depth exploration of the findings across different income groups and regional analyses unveils variations in the relationship, offering valuable insights into the multifaceted dynamics at play.