TY - Type of reference TI - The Nexus of Institutional Quality, Foreign Direct Investment, and Environmental Degradation: Evidence from Developing Economies AU - Sabrina Msakni AB - This study examines the relationship between foreign direct investment (FDI), institutional quality, and environmental degradation in 50 developing countries from 1996 to 2024. Using a panel ARDL model, it distinguishes between short- and long-run effects on CO₂ emissions. The results strongly support the Pollution Haven Hypothesis (PHH). FDI, trade openness, and economic growth significantly increase emissions in the long run. In contrast, corruption control plays a key mitigating role. In the short run, the impact of FDI is limited, but causality tests reveal a one-way effect from FDI to emissions. This highlights the structural influence of foreign investment on environmental outcomes. Countries with weak governance are particularly vulnerable. Foreign capital often flows into pollution-intensive sectors. Strengthening institutions and promoting green FDI are essential for sustainable development. DO - 10.21494/ISTE.OP.2026.1485 JF - Entropy: Thermodynamics – Energy – Environment – Economy KW - Developing countries, FDI, Corruption, CO₂ emissions, ARDL, Pollution Haven Hypothesis, Pays en développement, investissement direct étranger (IDE), corruption, émissions de CO₂, modèle ARDL, hypothèse des paradis de pollution, L1 - https://www.openscience.fr/IMG/pdf/iste_entropie26v7n3_5.pdf LA - en PB - ISTE OpenScience DA - 2026/09/7 SN - 2634-1476 TT - Qualité institutionnelle, investissement direct étranger et dégradation environnementale : étude empirique dans les économies en développement UR - https://www.openscience.fr/The-Nexus-of-Institutional-Quality-Foreign-Direct-Investment-and-Environmental IS - Special issue CIER VL - 7 ER -