Nonlinear impacts of FDI and GDP on the fishing footprint in Norway: insights from quantile-on-quantile and KRLS models
摘要
This study explores the asymmetric and nonlinear impacts of foreign direct investment (FDI) and economic growth (GDP) on Norway’s fishing footprint using advanced econometric techniques—Quantile-on-Quantile Regression (QQR) and Kernel-based Regularized Least Squares (KRLS). The results demonstrate a regime-dependent relationship between FDI and environmental pressure, showing evidence for both the Pollution Haven Hypothesis (PHH) and the Pollution Halo Hypothesis (PHalo). While GDP generally exhibits a negative effect on the fishing footprint, indicative of a pollution halo dynamic, the effect of FDI varies across the conditional distributions of both investment and ecological stress. These findings highlight the importance of quantile-sensitive frameworks in environmental-economic modeling and suggest that average-based models may overlook key heterogeneities. Norway’s case provides new empirical insights into the sustainability of high-income fishing economies under globalization and economic expansion.