The Impact of Foreign Direct Investment and Trade Liberalization on Economic Growth, Income Distribution and Environmental Quality: The Comparative Analysis between France and South Korea
Journal Title: International Journal of Academic Research in Business and Social Sciences - Year 2017, Vol 7, Issue 6
Abstract
The main objective of this paper is to analyze the impacts of foreign direct investment (FDI) and trade openness (TO) on three main pillars of sustainable development (SD) consists of growth, income distribution, and environmental quality, for two selected countries which are South Korea and France. The observation of this study is based on annual data covering the period from 1980 to 2014. All the three proposed model are analyzed by using Autoregressive Distributed Lag (ARDL) estimation technique.The long run elasticities of ARDL model indicated that FDI inflows have led to higher growth and lower pollution level for South Korea, but have widened the income inequality in this country. The TO, on the other hand, has improved the income distribution but failed to have any significant effect on growth and environmental quality. As for France, FDI inflows were found to reduce income equality but have no significant impact on growth and environmental quality. As for TO, it was found to have a positive influence on growth. South Korea could offer more attractive incentives to foreign investors to invest more in both agricultural and manufacturing sectors besides improving the trade policies in order to sustain economic growth. France on the other hand, should be more selective especially allowing foreign industries that use cleaner energy in their production. Besides, France could adopt stricter environmental strategies in their trade agreements with other countries in order to ensure better protection for the environment.
Authors and Affiliations
Abdul Rahim Ridzuan, Nor Asmat Ismail, Abdul Fatah Che Hamat, Mohamad Idham Md Razak, Faridah Pardi
Keywords
Related Articles
- EP ID EP613586
- DOI 10.6007/IJARBSS/v7-i6/2953
- Views 65
- Downloads 0
Corporate Social Responsibility Initiatives and Community Development Approaches
Corporate Social Responsibility has been discussed not only as volunteerily initiatives of the corporation to contribute to the community but also seen as an intervention effort in the process of developing a community....
Effects of Schema Therapy and Schema-Focused Mindfulness Therapy on Conflict Resolution of Iranian Women in Malaysia
This study aimed to investigate the effectiveness of schema therapy and schema-focused mindfulness therapy on conflict resolution among Iranian married women who lived in Malaysia during ?2015-2016. The qualified partici...
The Effectiveness of a Proposed Strategy Based on Video Stories on Youtube in the Development of Listening and Speaking Skills among the Non-Arabic Speakers
Many studies confirm the weakness of Arabic-speaking learners in acquiring general language skills and skills of listening and speaking in particular; where the development of listening skills and speech is one of the mo...
Islam-related News Credibility in Selected Nigerian and Malaysian Newspapers
Accuracy is a value fundamental to journalism, but journalists are often blamed for inaccurate reporting. News is the primary content of newspapers, and it is the responsibility of reporters, editors, and publishers to b...
Perception of the Effectiveness of Information Content in Newspaper Advertising in Promoting Government’s New Policy: Goods and Services Tax (GST)
In Information Management (IM) field, one of the important and critical part is dissemination of information. It is also an important phase in Information Life Cycle Management. This phase is where information is activel...