Environmental performance of Turkey amidst foreign direct investment and agriculture: A time series analysis

• Published date: 01 May 2022
• Author: Edmund Ntom Udemba,Anton Abdulbasah Kamil,Orhan Özaydın
• Date: 01 May 2022
• DOI: http://doi.org/10.1002/pa.2441

ACADEMIC PAPER

Environmental performance of Turkey amidst foreign direct

investment and agriculture: A time series analysis

Edmund Ntom Udemba | Anton Abdulbasah Kamil | Orhan Özaydın

Department of International trade, Faculty of

Economics Administrative and Social Sciences,

Istanbul Gelisim University, Istanbul, Turkey

Correspondence

Edmund Ntom Udemba, Department of

International trade, Faculty of Economics

Administrative and Social Sciences, Istanbul

Gelisim University, Istanbul, Turkey.

Email: eudemba@gelisim.edu.tr,edmund.

ntom@alumni.emu.edu.tr,eddy.ntom@

gmail.com

This research work is developed with interest on the performance of Turkish sustain-

able development amidst high inflow of foreign direct investment (FDI) and excessive

usage of fossil fuels (crude oil and gas). Turkey has been identified as among the

countries yet to ratify their agreements with both Kyoto and Paris agreements in

fight to reduce the global warming. It is essential to investigate to know if Turkey is

promoting climate change as could be among the reason why it fails to work in line

the agreement to reduce the global warming. The authors adopted quantile regres-

sion (QR) to study the linear relationship that exist among the selected variables in

order to have a valid conclusion on the stand of the Turkey towards the control of

global warming. Our findings are: A negatively significant relationship between the

carbon emission and the agriculture in the all the quantiles except the 90% quantile

which shows a positive relationship. Also, the ordinary least square (OLS) estimate

which acts as a robust check to the quantile findings confirms a negative relationship

between the carbon emission and agriculture. A positively significant relationship is

established between energy use and carbon emission in all the quantiles. EU (energy

use) is statistically significant for the 30, 40, 50, 70, 80 and 90% quantiles. EU is more

statistically significant for the 90% quantile than lower quantiles. Again, a mixed (both

positive and negative) relationship is established between foreign direct investment

and carbon emission in all the quantiles which shows that FDI is impacting the Turk-

ish environment a mixed manner. It shows that the foreign investors still engage in

both clean and dirty production in Turkey. This finding gives support to both pollu-

tion halo/haven hypothesis (PHH) in Turkey. However, a 1% point increase in GDP

per capita increases the carbon emission both in the 10% quantiles and OLS by 2.82

and 2.797% respectively. This shows a positive relationship that exist between GDP

per capita and the carbon emission. GDP is statistically significant for all quantiles,

and show that there is a strong relationship between CO

2

and GDP. Turkish sustain-

able policies should focus on promotion of clean FDI and agricultural practice with

economic growth anchored on renewable energy sources.

1|INTRODUCTION

Foreign Direct Investment (FDI) is among the agents of the economic

growth if managed and utilized well through the effective policies of

the host countries. It has innumerable impacts on the economy of the

host country which are classified into three: competitive effect, link-

age effect and employment effect. These effects reflect on the pro-

duction that transcends to positive Gross Development Product

(GDP), host trade relationship with other countries, balance of pay-

ment, and the general welfare of the host country (Lee, 2013). The

Received: 16 May 2020 Revised: 10 July 2020 Accepted: 16 August 2020

DOI: 10.1002/pa.2441

J Public Affairs. 2022;22:e2441. wileyonlinelibrary.com/journal/pa © 2020 John Wiley & Sons Ltd 1of9

https://doi.org/10.1002/pa.2441