Foreign capital and environmental degradation in Libya
DOI:
https://doi.org/10.58987/dujhss.v4i8.311Keywords:
foreign direct investment, environmental degradation, Pollution haven hypotheses, LibyaAbstract
The main aim of this study was to investigate the nature of relationship between foreign direct investment and environmental degradation in Libya during the period 1990-2023. In order to achieve its objective, the study adopted Augmented ARDL model. The study results indicate the existence of Pollution haven hypotheses PHH. Moreover, it showed a positive relationship between foreign direct investment and environmental degradation in Libya.
References
المراجع العربية:
الباشا، عبيدة مفتاح. (2026). دور القانون البيئي الليبي في إرساء أسس التنمية المستدامة. مجلة ساحل المعرفة للعلوم الإنسانية والتطبيقية. 2. 960-706.
الذويبي، بروج أحمد علي. (2026). التطور التاريخي لقوانين الحماية اإلدارية للبيئة في ليبيا. مجلة صدى الجامعة للعلوم الإنسانية. 4(2). 261-272.
المراجع الأجنبية:
Abdulhakim, A. A., & Trek, Z. (2016). The Effects of Foreign Direct Investment on Economic Growth in Libya: A Causality Analysis. Open Science Journal, 1(2), 1-15.
Ayobamiji, A. A., & Kalmaz, D. B. (2020). Reinvestigating the determinants of environmental degradation in Nigeria. International Journal of Economic Policy in Emerging Economies, 13(1), 52-71.
Bendahmane, A., Dahmani, M. D., Attouchi, M., Boutalbi, H., & Berrarbi, A. (2025). How do energy consumption, natural resources, trade openness and FDI affect environmental quality in Algeria? Fresh insights from the novel DYNARDL simulations and KRLS approach. Theoretical & Applied Economics, 32(4), 121.
Cole, M. A., Elliott, R. J., & Zhang, L. (2017). Foreign direct investment and the environment. Annual Review of Environment and Resources, 42, 465-487.
He, J. (2006). Pollution haven hypothesis and environmental impacts of foreign direct investment: The case of industrial emission of sulfur dioxide (SO2) in Chinese provinces. Ecological economics, 60(1), 228-245.
Keho, Y. (2015). Is foreign direct investment good or bad for the environment? Times series evidence from ECOWAS countries. Econ Bull, 35(3), 1916-1927.
Khan, M. A., & Ozturk, I. (2020). Examining foreign direct investment and environmental pollution linkage in Asia. Environmental Science and Pollution Research, 27(7), 7244-7255.
Kida, N. M. (2014). Foreign direct investment environment and economic growth. Acta Universitatis Danubius. Œconomica, 10(4), 31-41.
Mabey, N., & McNally, R. (1999). Foreign direct investment and the environment. Godalming, Surrey: WWF-UK.
Opoku, E. E. O., Adams, S., & Aluko, O. A. (2021). The foreign direct investment-environment nexus: does emission disaggregation matter?. Energy Reports, 7, 778-787.
Osabohien, R., Akpa, A. F., Zogbasse, S., Jaaffar, A. H., Al-Faryan, M. A. S., Olalekan, P. A., & Orole, F. (2026). Revisiting Renewable Energy and Foreign Direct Investment: Paradoxical Impacts on Ecological Footprint. International Journal of Energy Economics and Policy, 16(2), 775.
Pesaran, M. H., & Shin, Y. (1998). An autoregressive distributed-lag modelling approach to cointegration analysis. Econometric Society Monographs, 31, 371-413.
Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of applied econometrics, 16(3), 289-326.
Sam, C. Y., McNown, R., & Goh, S. K. (2019). An augmented autoregressive distributed lag bounds test for cointegration. Economic Modelling, 80, 130-141.
Solarin, S. A., & Al-Mulali, U. (2018). Influence of foreign direct investment on indicators of environmental degradation. Environmental Science and Pollution Research, 25(25), 24845-24859.
Toda, H. Y., & Yamamoto, T. (1995). Statistical inference in vector autoregressions with possibly integrated processes. Journal of econometrics, 66(1-2), 225-250.
Zafar, M. W., Zaidi, S. A. H., Khan, N. R., Mirza, F. M., Hou, F., & Kirmani, S. A. A. (2019). The impact of natural resources, human capital, and foreign direct investment on the ecological footprint: the case of the United States. Resources Policy, 63, 101428.























