The effect of FDI on environmental emissions: Evidence from meta-analysis
A frequently-raised issue about foreign direct investment (FDI) is the potentially negative consequences for the environment. The potential environmental cost resulting from increased emissions may undermine the economic gains associated with increases in FDI inflow. Although the literature is dominated with this adverse view of FDI on the environment, there is a possibility that FDI can contribute to a cleaner environment, especially, if FDI comes with green technologies and this creates spillovers for domestic industries.