Document Type

Article

Publication Date

4-1-2018

Abstract

The Research paper I am presenting is to find out the effect of FDI towards environmental pollution. Headlines of New York Times on June 15, 2011 found high level of lead concentration in 233 adults and 99 children which could lead to brain, kidney, liver, nerves, stomach damage and could lead to death. The purpose of my study is to validate three hypotheses which is the pollution haven hypothesis, endowments factor hypothesis, and chain effect hypothesis made by Soilita, 2005.The dependent variable would be environmental pollution while the independent variable of the study would be bird, fish, and plant species threatened, Nitrous oxide (N2O) emissions, carbon dioxide (CO2¬) emissions from liquid fuel consumption, population exposed to levels exceeding World Health Organization (WHO) guideline value of particulate matter(PM) 2.5 air pollution, net foreign direct investment (FDI), FDI inflows, FDI outflows, CO2 emissions, the ease of doing business and the rate of primary completion. The data was obtained from United Nations Conference on Trade and Development (UNCTAD) and the World Bank. The methods that I will be using is the Ordinary Least Square (OLS) Method on a Linear Regression Model. The result is to capture direct effect of FDI on pollution, ceteris paribus, pooled samples of countries and different country groups to prove/ reject the hypothesis above. In conclusion, is to link FDIs and pollution through analysis of the direct and conditional effects of FDI on pollution, environmental and water impacts caused by air pollutants and FDIs from ten groups of countries.

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