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The globalization accelerated especially as of 1980s and the countries began to integrate global economy and remove the constraints on the flows of goods, services and capital. In this context, the developed countries partly shifted their environmentally hazardous production activities to the developing countries especially by means of foreign direct investments. This study investigates the impact of foreign direct investment inflows on the environmental pollution in Turkey during the period 1974-2010 by using Toda and Yamamoto (1995) causality test. We found that there was a bidirectional causality between foreign direct investment inflows and emissions.
Keywords: Foreign direct investment inflows, emissions, causality analysis
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