Effects Of Foreign Direct Investments On Co2 Emissions: Ardl Bounds Test Approach For Turkey

Foreign direct investments have significant advantages for a country’s economy while it also has some adverse effects over environment and human health due to increased CO2 emissions. While less and developing countries attempt to attract foreign direct investment for their advantages, developed countries impose some sanctions against these or even direct their own investments to less developed and developing countries. This study aims to analyze effects of foreign direct investments over CO2 emissions by using ARDL bounds tests for the period between 1974-2014. The study concludes that Gross domestic per capita (GDP per capita) decreases CO2 emission, energy consumption and foreign direct investment increase CO2 emission and based on these findings the Hypothesis that Turkey is a Pollution Heaven is valid