Inward FDI, Growth and Environmental Policy

Abstract. Persistent disparities in regional economic conditions within developed countries continue to offer challenges to policymakers. Yet the process of regional growth has become even more complex, owing in part to the expending role of inward foreign direct investment. The role of FDI in stimulating regional growth is likely to be as strong as there is environmental policy context. The main objective of this study is to empirically examine FDI inflow effect on the gulf Persian region's economic growth as environmental policies improve over the period 1980 ? 2012. The results show that FDI inflow help increase of the region's economic growth, as environmental policy has improved. Porter hypothesis is valid in this region.