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Various measures are taken to reduce environmental pollution. Countries make taxation for environmentally friendly production and consumption activities, while they also make environmental expenditures. In this study, the relationship between environmental protection expenditures and environmental pollution is examined for 23 OECD countries in the high income group. Panel data analysis was performed by using annual data for the period 1995-2017. In the analysis, second generation tests that take into account the cross-sectional dependence were preferred. According to the results of the study, there is a long-term cointegration relationship between environmental pollution and environmental protection expenditures. However, there is a causal relationship from environmental protection expenditures to environmental pollution. [ABSTRACT FROM AUTHOR]

The relationship between terrorism and foreign direct investment in Turkey has been investigated by using cointegration and causality tests for the period 1980-2015. As distinct from the current literature, firstly the relationship between the series was analyzed by the hidden cointegration approach developed by Hatemi-J and Irandoust (2012). This analysis points out that there is no cointegration relationship between terrorism and foreign direct investment. Then the asymmetric causality relationship between the series was analyzed by Hatemi-J approach (2012). According to the results of this analysis, it has been determined that there is no causality between terrorism and foreign direct investment in contrast to the current studies in the literature. All in all, it is concluded that terrorist activities don't affect foreign direct investment behaviors in the case of Turkey. [ABSTRACT FROM AUTHOR]