The relationship between foreign direct investment, economic growth, energy consumption and CO2 emissions: Evidence from ARDL model with a structural break for Turkey

This paper investigates the impact of foreign direct investments, energy consumption and economic growth on CO2 emissions in Turkey for period 1974-2015 by using autoregressive distributed lag (ARDL) model with a structural break. FMOLS DOLS estimations are employed to check robustness model. The findings reveal long-run relationship between variables, show that FDI contributes positively emissions, validating pollution haven hypothesis. Economic has significantly positive whereas its square is also significant, but negative which confirms Environmental Kuznets Curve Energy associated meaning higher levels lead environmental degradation. dummy variable including break statistically significant positive. It concluded because inflows engender an increment carbon should adopt cleaner technologies avoid pollution.