1. FDI and Forest Depletion
Ahmet, Duncan, Nazar

2. How Green Was My Valley…
Pre-Industrial Revolution
Industrial Revolution
Post-Industrial Revolution

3. Foreign Direct Investment
Question
Independent and dependent variables
Hypothesis

4. Methodology Non-random selection? FDI inflow not random Cases
Liberia: HH
China: LL
Uganda: HL NFD
Counter-factuals

5. Dependent Variable Net Forest Depletion (NFD) from WDI
NFD as %of GDP
NET FOREST DEPLETION = [(UNIT RESOURCE RENTS)× (EXCESS ROUNDWOOD HARVEST)]- NATURAL GROWTH
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GDP

6. 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 $

7. Control Variables GINI Coefficient/Index Population growth (annual %)
Urban population growth (annual %)
Agricultural land (% of lad area)
Forest area (% of land area)
DEMOCRACY!!!

8. Independent Variable FDI net inflows, as % of GDP
FDI net inflows, BoP current US$

9. Data 2271 Observations From 183 countries Between 1990-2012
Lots of missing NFD data
e.g Brazil

10. Basic Correlation Results

11. Regression Results

12. Panel Data Estimators

13. Multiple Imputation

14. Hausman Test Results

15. LM Test Results