Korea Trade Review (무역학회지)

Korea Trade Research Association (한국무역학회)
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Analysis of the Influence of Foreign Direct Investment on Carbon Emissions: Analysis Using Panel VAR Model

외국인투자가 탄소배출량에 미치는 영향분석: 패널 VAR 모형을 이용한 분석

  • Ryoo, Sung-Woo (Department of International Trade, Pusan National University) ;
  • Lee, Yang-Kee (Department of International Trade, Pusan National University) ;
  • Kim, Neung-Woo (Institute of Economics and International Trade, Pusan National University)
  • 류승우 (부산대학교 무역학부) ;
  • 이양기 (부산대학교 무역학부) ;
  • 김능우 (부산대학교 경제통상연구원)
  • Received : 2019.01.11
  • Accepted : 2019.02.26
  • Published : 2019.02.28
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Abstract

The purpose of this study is to investigate the relationship between foreign investment and carbon emissions in the Korean electricity sector, the causal relationship between the foreign investment invested in the electric power sector in the 16 regional regions and the carbon emissions in the region, The purpose of this study is to analyze the effects of foreign investment on these sectors and the carbon footprint of these sectors using Panel Random Effect Analysis, Panel VAR and OLS models. A panel analysis of foreign investment and regional carbon emissions showed that there was a causal relationship. Based on this analysis, OLS analysis showed that 7 out of 16 metropolitan areas were foreign investment And carbon emissions were significant. In the remaining six regions except Gwangju, there was a causal relationship between foreign investment in the local power sector and the reduction of carbon emissions. After categorizing the electric power industry by device, process, purpose and number of employees, causality also appeared in relation to foreign investment in these sectors and their carbon emissions. Through this study, the authors suggest that foreign investment can be a way to solve not only the financial burden of carbon emission problem, but also the development of national economy and industry through the inflow of capital and advanced new technology.

Keywords

Acknowledgement

이 과제는 부산대학교 기본연구지원사업(2년)에 의하여 연구되었음.

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