Abstract

• This paper explains the nexus between Environment and Foreign Direct Investment with an analysis of the Pollution Haven Hypothesis (PHH), and evaluates the constraints shaping to the preservation of environment related to FDI in Myanmar. Myanmar is an enriched natural resources country, but it has limited, technology, infrastructure and manufacturing base. The launching of democratic reforms of the country in 2011 dramatically affected international investment communities and foreign investors began to intensely look at the country’s enriched natural resources for their investment. Myanmar government has improved rules and regulations for investment projects and scrutinized practices of foreign investors in line with responsible investment and sustainable development of Myanmar. However, there are inevitably environmental impacts and degradation in some project areas. The paper, thus, raised a question: why Myanmar has faced the environmental security challenges from FDI although it has upgraded environmental laws and regulations under the changing context since 2011. An essential feature of the paper is that the enriched resources with poor environmental practices in Myanmar are attractive to resource seeking FDI and the condition has caused negative impacts on its environment. The analysis attempts to prove that economic growth with environmental sustainability in Myanmar depends on how environmental practices in carrying out investment projects comply with its regulations and laws.