Foreign Direct Investment and Business Cycle Co-movement: Evidence from Asian Countries

摘要: Regardless of the stage development economy, foreign direct investment and trade are prominent channels business cycle co-movements. In view sustainability concerns, carbon emissions have been in focus for shaping international policy on FDI. We analyze linkages between FDI, relative to co-movements using a panel comprising 25 pairs Asian economies. Adopting econometric techniques such as three-stage least squares Bayesian inferences, results indicate that both FDI important transmission. It emerges correlation manufacturing sector emission countries is negatively related co-movement trade, but positively Therefore, horizontal tends complement trade. conclude reduction CO2 from acts stabilizing agent co-movement, while induces pollution these