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
Basic Correlation Results
Regression Results
Panel Data Estimators
Multiple Imputation
Hausman Test Results
LM Test Results