Date Thesis Awarded

5-2023

Access Type

Honors Thesis -- Open Access

Degree Name

Bachelors of Arts (BA)

Department

Economics

Advisor

Ariel BenYishay

Committee Members

Luis Baldomero-Quintana

Rachel Sayers

Abstract

In this paper I explore the relationship between foreign direct investment (FDI) and deforestation in Cambodia. Through an event study framework, I show that economic land concessions have a negative relationship with tree cover, over time, having stronger and stronger negative effects. This relationship is more pronounced in foreign economic land concessions when compared to domestic economic land concessions. Through the use of a difference in differences research design I examine the relationship between foreign and domestic concessions through the implementation of a ELC concession ban. The ban only led to worsening levels of deforestation within the borders of foreign economic land concessions. This paper provides evidence that not only is foreign direct investment is a significant driver of deforestation but that also attempts to reduce or stop foreign direct investment can exacerbate levels of deforestation present in a nation already.

Recommended Citation

Bloodworth, Kevin, "FDI and Environmental Externalities in Southeast Asia" (2023). Undergraduate Honors Theses. William & Mary. Paper 2007.
https://scholarworks.wm.edu/honorstheses/2007