Skip to main content

Advertisement

Log in

Trade, FDI, and CO2 emissions nexus in Latin America: the spatial analysis in testing the pollution haven and the EKC hypotheses

  • Research Article
  • Published:
Environmental Science and Pollution Research Aims and scope Submit manuscript

Abstract

Americas have a mix of developing and developed economies. Thus, the pollution haven hypothesis (PHH) is expected in the developing countries of Latin America. Using the spatial Durbin model, the present study investigates the effects of foreign direct investment (FDI), exports, and imports on emissions in 18 Latin American countries from 1970 to 2019, including economic growth and the financial market development (FMD) in the model. The environmental Kuznets curve (EKC) is validated, and the region is found in the first stage of the EKC. Hence, Latin American economic growth has environmental consequences. Exports have a positive impact on home and neighboring countries’ CO2 emissions and pollute the whole region, which validates the PHH. Imports could not affect the home economies but have positive environmental effects on neighboring economies and the entire Latin American region. The negative coefficient of imports is larger than the positive coefficient of exports. Therefore, the net effect of trade is environmentally pleasant in Latin America. Moreover, FDI has a statistically insignificant effect and the impact of FMD is positive on CO2 emissions. The study recommends caring the exporting, financial, and economic activities for a sustainable environment in Latin America.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2

Similar content being viewed by others

Data availability

The data sets used during the current study are available from the corresponding author on reasonable request.

References

Download references

Author information

Authors and Affiliations

Authors

Contributions

I am a single author of the present research.

Corresponding author

Correspondence to Haider Mahmood.

Ethics declarations

Ethics approval

N/A.

Consent to participate

N/A.

Consent for publication

N/A.

Competing interests

The author declares no competing interests.

Additional information

Responsible Editor: Eyup Dogan

Publisher’s note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Springer Nature or its licensor holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Mahmood, H. Trade, FDI, and CO2 emissions nexus in Latin America: the spatial analysis in testing the pollution haven and the EKC hypotheses. Environ Sci Pollut Res 30, 14439–14454 (2023). https://doi.org/10.1007/s11356-022-23154-x

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11356-022-23154-x

Keywords

Navigation