Article Per Year (5 Year)
p-Index From 2021 - 2026
0.23
P-Index
This Author published in this journals
All Journal IJBE (Integrated Journal of Business and Economics)
Olivia Tanaya
Universitas Airlangga; Universitas Surabaya
Humanities Social Sciences

Published : 1 Documents Claim Missing Document
Claim Missing Document
Check
Articles

Found 1 Documents
Search

 1 
Does FDI inflow harm environmental quality in Indonesia? Olivia Tanaya; Deni Kusumawardani; Unggul Heriqbaldi
Integrated Journal of Business and Economics (IJBE) Vol 10, No 3 (2026): Integrated Journal of Business and Economics
Publisher : Universitas Bangka Belitung

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.33019/ijbe.v10i3.1582

Abstract

As sustainability becomes increasingly embedded in global normative frameworks, the persistent technological and informational asymmetries faced by developing countries remain salient. This article examined whether inward foreign direct investment (FDI) facilitates the transmission of environmentally beneficial practices from foreign enterprises to host economies. Previous studies found mixed results; one argues that foreign firms contribute to environmental upgrading, while others contend that foreign firms invest in developing countries primarily to exploit lenient environmental regulations. To address this debate, the analysis applies Autoregressive Distributed Lag (ARDL) techniques to an extensive time series covering the period 1970-2022. The results suggest that, in the long term, FDI can improve environmental quality in Indonesia through reductions in CO₂ emissions. This finding supports the pollution halo hypothesis. In the short term, however, FDI exhibits a negative but insignificant effect, suggesting a gradual transition toward more sustainable operations. Additionally, trade openness and industrialization lead to greater CO₂ emissions, implying that increased trade and industrial activity may elevate the demand for “dirty goods” and consequently diminish environmental quality.      
Co-Authors Deni Kusumawardani Unggul Heriqbaldi