The Environmental Cost of Attracting FDI: An Empirical Investigation in Brazil

Autor(es)

Polloni-Silva, Eduardo ; Roiz, Guilherme Augusto ; Mariano, Enzo Barberio ; Moralles, Herick Fernando ; Nascimento Rebelatto, Daisy Aparecida

• Tipo de documento: Artigo Científico
• Fonte: SUSTAINABILITY; v. 14, n. 8, p. 14-pg., 2022-04-01.

Resumo

Many emerging economies seek to increase their Foreign Direct Investment (FDI) inflows to achieve some promised benefits, such as economic growth and advanced technologies. Nevertheless, FDI does not represent a random investment decision, and international literature demonstrates that foreign investors are mostly interested in fast-growing regions. Therefore, this study uses traditional panel data econometrics coupled with Data Envelopment Analysis (DEA) to investigate the environmental impact in regions with great potential to attract foreign investments (e.g., more advanced regions with growing infrastructure), therefore analyzing the environmental cost of attracting FDI. Additionally, this study employs regional data from the 'Atlas of FDI in the State of Sao Paulo' to investigate the environmental effects of FDI in the periphery, where attractiveness levels are low. The results indicate that regions with higher attractiveness levels prepare a pollutant development strategy and that FDI in less-developed regions is harmful to the environment. The results point to new perspectives on the FDI-environment debate and suggest that attracting FDI is environmentally costly. Also, FDI is heterogeneous, with its presence in peripheral areas being harmful to the environment. To conclude, we discuss these results and present an agenda for future research. (AU)

• Processo FAPESP: 19/19905-0 - Impactos ambientais e direcionadores do investimento direto estrangeiro: evidência do estado de São Paulo, Brasil
• Beneficiário: Herick Fernando Moralles
• Modalidade de apoio: Auxílio à Pesquisa - Regular
• Processo FAPESP: 20/06473-1 - Investimento direto estrangeiro e impactos ambientais: um estudo econométrico no Estado de São Paulo considerando a origem, setor e a região anfitriã
• Beneficiário: Eduardo Polloni Silva
• Modalidade de apoio: Bolsas no Brasil - Doutorado