Latin America: An Environmental Pollution Haven?
DOI:
https://doi.org/10.15359/rca.55-2.1Keywords:
pollution, income, FDI, environmental Kuznets curve, pollution havenAbstract
[Introduction]: Global environmental degradation is a matter of constant concern that triggered multiple efforts to find its determinants and question the growth style adopted by different countries. [Objective]: Provide empirical evidence of the relationship between pollution, income per person, and foreign direct investment (FDI). [Methodology]: Using an annual panel data of Feasible Generalized Least Squares (FGLS) from 1980 to 2015 in 15 Latin American countries; using the theory of the Environmental Kuznets Curve (EKC) and the Environmental Pollution Haven (EPH). [Results]: It is found that increased levels of FDI are associated with higher pollution, but this relationship is reversed when Latin American economies improve their per capita income above USD 10,380, on average. [Conclusions]: The Environmental Kuznets Curve hypothesis is verified, and there are signs that the Latin American region is considered an Environmental Pollution Haven. These findings add efforts to review policies to attract FDI in the region.
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