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