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Investigating the relationship between foreign direct investment (FDI) and net forest depletion (NFD) using data from 183 countries between 1990-2012, accounting for control variables like GINI coefficient and urban population growth. The study employs panel data estimators, multiple imputation, and statistical tests to analyze the effects of FDI on forest resources.
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FDI and Forest Depletion Ahmet, Duncan, Nazar
How Green Was My Valley… • Pre-Industrial Revolution • Industrial Revolution • Post-Industrial Revolution
Foreign Direct Investment • Question • Independent and dependent variables • Hypothesis
Methodology • Non-random selection? • FDI inflow not random • Cases • Liberia: HH • China: LL • Uganda: HL NFD • Counter-factuals
Dependent Variable • Net Forest Depletion (NFD) from WDI • NFD as %of GDP • NET FOREST DEPLETION = [(UNIT RESOURCE RENTS)× (EXCESS ROUNDWOOD HARVEST)]- NATURAL GROWTH ___________________________________ GDP
NFD in 2005 US $ • NFD in current US $ adjusted to inflation by GDP deflator (base year by country) GDP deflator + year GDP deflator/100 New GDP deflator x NFD in current US $ = NFD in 2005 $
Control Variables • GINI Coefficient/Index • Population growth (annual %) • Urban population growth (annual %) • Agricultural land (% of lad area) • Forest area (% of land area) • DEMOCRACY!!!
Independent Variable • FDI net inflows, as % of GDP • FDI net inflows, BoP current US$
Data • 2271 Observations • From 183 countries • Between 1990-2012 • Lots of missing NFD data • e.g Brazil