Greenfield, Mergers & Acquisitions, Energy Consumption, and Environmental Performance in selected SAARC and ASEAN countries

Nor Aznin Abu Bakar, Jimoh Olajide Raji and Rana Muhammad Adeel-Farooq
Additional contact information
Nor Aznin Abu Bakar: School of Economics, Finance and Banking, Universiti Utara Malaysia, 06010, Sintok, Kedah, Malaysia.
Jimoh Olajide Raji: School of Economics, Finance and Banking, Universiti Utara Malaysia, 06010, Sintok, Kedah, Malaysia.
Rana Muhammad Adeel-Farooq: School of Economics, Finance and Banking, Universiti Utara Malaysia, 06010, Sintok, Kedah, Malaysia.

International Journal of Energy Economics and Policy, 2019, vol. 9, issue 2, 216-224

Abstract: This study by using the random effects (RE) and robust least square estimates (RLS) examines the influence of two different types of FDI namely Greenfield (GF), Mergers & Acquisition (M&A) and energy consumption, on environmental performance of the eight selected economies in SAARC and ASEAN regions over the 2003-2014 period. Moreover, economic growth and population growth are used as controlled variables. The originality of this study is the use of Environmental Performance Index (EPI) to examine the effects of two different types of foreign capital inflows on the environment. According to the empirical outcomes of this study, GF and M&A investments have exacerbated the environmental performance in the selected eight SAARC and ASEAN countries, hence confirm the Pollution Haven Hypothesis (PHH) to be valid. In addition, energy consumption and population growth are also found to be serious havoc for the environmental performance in this case. Nonetheless, economic growth has improved the overall environmental performance in these countries. The study suggests the formulation and enforcement of strict environmental regulations to seek environment friendly and energy efficient GF and M&A investments. In addition, renewable energy use and population control policies are highly desirable in these countries for clean and healthy environment. Accordingly, these economies are recommended to develop policies to realize sustainable economic development for improved environmental performance.

Keywords: Greenfield; Mergers & Acquisition; Environmental Performance Index; SAARC; ASEAN (search for similar items in EconPapers)
JEL-codes: C1 F10 F21 F64 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
https://www.econjournals.com/index.php/ijeep/article/download/7512/4229 (application/pdf)
https://www.econjournals.com/index.php/ijeep/article/view/7512/4229 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2019-02-24

Access Statistics for this article

International Journal of Energy Economics and Policy is currently edited by Ilhan Ozturk

More articles in International Journal of Energy Economics and Policy from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().