Bibliometric Review and Content Analysis on the Relationship Between Foreign Direct Investment, Environmental Degradation, and Income Inequality

Abstract

This study aims to examine the complex relationship between foreign direct investment (FDI), environmental degradation, and income inequality using bibliometric methods and content analysis. Utilizing the Scopus database from 2005 to 2025, it identified 289 relevant articles and filtered them based on specific inclusion criteria. Bibliometric analysis was used to track publication trends, author productivity, journals, countries, and patterns of scientific collaboration. Meanwhile, content analysis explored substantive issues from the clustered literature. The results indicate that this topic has experienced substantial growth in publications over the past decade, with the most significant contributions coming from China and the United States. Nine main themes were identified: FDI's role in economic growth and trade openness, carbon pricing, corruption and governance, climate change, globalization, the relationship between environmental degradation and health, and renewable energy as a potential solution. Key findings suggest that while FDI can promote economic growth and income equality in specific contexts, it often worsens environmental harm and increases social inequalities, particularly in developing countries. This study emphasizes the importance of selective, inclusive, and sustainability-focused policies to ensure that FDI benefits are distributed fairly while reducing ecological impacts. Its contribution enriches existing academic literature and offers practical recommendations for policymakers to develop sustainable investment strategies in the era of globalization.