Positive And Negative Impacts Of Fdi Inward Stock Essay

780 Words Sep 15th, 2016 4 Pages
4. Results
Table 1 summarises the regression results analyzed from various specifications of equation (1) and equation (2). A number of observations could be presented from the regression results. First, merchandise export is negatively related with EPI where it is significant, indicating that greater export in predisposition of manufacturing and primary products are potentially associated with environmental degradation. The negative effect of merchandise export is significant, confirming inter-temporal aspect of the relationship (Table1). Second, lagged effects of service exports display a positive relationship with EPI, but low significant coefficient value. This result implying that transition from primary and manufacturing to services exports contributes positively to environmental sustainability. Third, lagged effects of FDI inward stock is found to be negatively and insignificantly related to EPI in several model specifications, which indicates that inward foreign investment may not create adverse environmental consequences in recipient countries. In other word, implying that transition from primary and manufacturing to services exports do not contributes negatively to environmental sustainability. Fourth, lagged effects of FDI outward stock endure a negative positive and significant coefficient in model 2 and model 3. The empirical findings lend proof to the contention that trade and investment flows significantly influence environmental sustainability of countries.…

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