The Pollution Haven Hypothesis and Foreign Trade - A Survey on the Relation with Environment
Abstract
The liberalization of foreign trade has enabled the movement of foreign direct investments between countries. Therefore, developing countries have sought to achieve their industrialization targets by applying loose environmental policies to attract foreign direct investments to their own countries. These environmental policies are attractive to pollution-causing industries in developed countries and cause the movement of these industries to developing countries. This situation has been the subject of research in the literature under the name of “Pollution Haven Hypothesis” or “Pollution Shelters Hypothesis”. This study aims to examine the studies contributing to the Pollution Paradise Hypothesis literature. The results based on our review of existing literature show that there is still no clear conclusion on the Pollution Haven Hypothesis.
Downloads
References
Akar, İ. (2018). OECD Ülkelerinde CO2 emisyonu ile dış ticaret arasındaki ilişki: bir panel veri analizi. Yayınlanmamış yüksek lisans tezi. Eskişehir Osmangazi Üniversitesi, Eskişehir.
Al-Mulali, U. & Foon Tang, C. (2013). Investigating the validity of pollution haven hypothesis in the gulf cooperation council (GCC) countries, Energy Policy, 60, 813-819.
Aminu, M. A. (2005, Haziran). Foreign Direct Investment and the Environment: Pollution Haven Hypothesis Revisited, Paper prepared for the Eight Annual Conference on Global Economic Analysis, Lübeck, Germany.
Antweiler, W., Copeland, B.R., Scott Taylor, M. (1998). Is free trade good for the environment?, NBER Working Paper, Yayın No: 6707.
Ben Kheder, S. & Zugravu, N. (2008, Eylül). The Pollution Haven Hypothesis: A Geographic Economy Model in a Comparative Study, Fondazione Eni Enrico Mattei Corso Magenta, Milano.
Birdsall, N. & Wheeler, D. (1993). Trade policy and ındustrial pollution in latin america: where are the pollution havens?, The Journal of Environment & Development, 2, 1, 137-149.
Clark, D. P., Serafino, M., Simonetta, Z. (2000). Do dirty ındustries conduct offshore assembly ın developing countries?, International Economic Journal, 14, 3, 75-86.
Cole, M. A. (2000). Air pollution and ‘dirty’ ındustries: how and why does the composition of manufacturing output change with economic development?, Environmental and Resource Economics, 17, 109–123.
Cole, M. A. & Elliott, R. J. R. (2003). Determining the trade–environment composition effect: the role of capital, labor and environmental regulations, Journal of Environmental Economics and Management, 46, 3, 363-383.
Cole, M. A. (2004). Trade, the pollution haven hypothesis and the environmental Kuznets curve: examining the linkages, Ecological Economics, 48, 1, 71-81.
Çınar, S., Yılmazer, M., Arpazlı Fazlılar, T. (2012). Kirlilik yaratan sektörlerin ticareti ve çevre: gelişmiş ve gelişmekte olan ülkeler karşılaştırması, Doğuş Üniversitesi Dergisi, 13, 2, 212- 226.
Dasgupta, S., Mody, A., Roy, S., Wheeler, D. (1995). Envıronmemtal Regulatıon And Development: A Cross-Country Empırıcal Analysıs, Policy Research Department, Working Paper, The World Bank, Yayın No:1448, Washington.
Eskeland, G.S. & Harrison, A.E. (2003). Moving to greener pastures? Multinationals and the pollution haven hypothesis, Journal Of Development Economics, 70, 1 – 23.
Gökalp, M.F. & Yıldırım, A. (2004). Dış ticaret ve çevre: kirlilik sığınakları hipotezi Türkiye uygulaması, Yönetim ve Ekonomi, 11, 2, 99-114.
Harris, M. N., Konya, L., Matyas, L. (2002). Modelling the ımpact of environmental regulations on bilateral trade flows: OECD, 1990-1996, The World Economy, 25, 3, 387-405.
Hoffmann, R., Lee, C.-G., Ramasamy, B., Yeung, M. (2005). FDI and pollution: a granger causality test using panel data, Journal of International Development, 17, 3, 311-317.
Işıldar, P. (2011). Türkiye’ de dış ticaretin çevre üzerine etkisi ve kirlilik sığınakları hipotezi: çevre yönetim sistemi (ISO 14001) ve ekonometrik bulgular, Dokuz Eylül Üniversitesi Sosyal Bilimler Enstitüsü, Yüksek Lisans Tezi.
King, J. (2011). Foreign Direct Investment and Pollution Havens, Journal of Economic and Econometrics, 54, 1, 40-59.
Koźluk, T. and C. Timiliotis (2016), “Do environmental policies affect global value chains?: A new perspective on the pollution haven hypothesis”, OECD Economics Department Working Papers, No. 1282, OECD Publishing, Paris.
Xing, Y. & Kolstad, C. D. (1998). Do lax environmental regulations attract foreign ınvestment?, Environmental and Resource Economics, 21, 1, 1–22.
Letchumanan, R. & Kodama, F. (2000). Reconciling the conflict between the `pollution-haven’ hypothesis and an emerging trajectory of international technology transfer, Research Policy, 29, 1, 59-79.
List, J. A. & Co, C. Y. (2000). The effects of environmental regulations on foreign direct ınvestment, Journal of Environmental Economics and Management, 40, 1, 1-20.
Lopez, L. A., Arce, G., Kronenberg, T., Rodrigues, J. F. D. (2018). Trade from resource-rich countries avoids the existence of a global pollution haven hypothesis, Journal of Cleaner Production,175, 599-611.
Lucas, R.E.B., Wheeler, D., Hettige, H. (1992). Economic Development, Environmental Regulation And The International Migration Of Toxic Industrial Pollution 1960-88, Policy Research Working Papers, The World Bank, No:1062, Washington.
Low, P., Yeates, A. (1992). Do 'dirty' industries migrate. P. Low (ed.) International
trade and the environment içinde. World Bank discussion paper, No. 159, 89-104. ss.
MacDermott, R. (2009). A panel study of the Pollution-Haven Hypothesis, Global Economy Journal, 9, 1, 1-12.
Mani, M. & Wheeler, D. (1997). In search of Pollution Havens? Dirty Industry in the World Economy, 1960-1995, The OECD Conference (The Hague, 28-29 January 1999), Workshop 3: 1-30, (Çevrimiçi)
Murthy, K. V. & Gambhir, S. (2018). Analyzing Environmental Kuznets Curve and Pollution Haven Hypothesis in India in the Context of Domestic and Global Policy Change, Australasian Accounting, Business and Finance Journal, 12, 2, 134-156.
Solarin, S. A., Al-Mulali, U., Musah, I., Ozturk, I. (2017). Investigating the pollution haven hypothesis in Ghana: An empirical investigation, Energy, 124, 706-719.
Şahinöz, A. & Fotourehchi, Z. (2014). Kirlilik emisyonu ve doğrudan yabancı sermaye yatırımları: Türkiye için ‘Kirlilik Sığınağı Hipotezi’ Testi, Sosyoekonomi, 21, 21.
Tobey, J. A. (1990). The effects of domestic environmental policies on patterns of world trade: an empirical test, Kyklos, 43, 2, 191-209.
Van Beers, C. & Van den Bergh, J. C. J. M. (1997). An empirical multi-country analysis of the impact of environmental regulations on foreign trade flows, Kyklos, 50, 1, 29-46.
Wagner, U. J. & Timmins, C. D. (2009). Agglomeration effects in foreign direct investment and the Pollution Haven Hypothesis, Environmental and Resource Economics, 43, 2, 231-256.
Walter, I. & Ugelow, J. L. (1979). Environmental policies in developing countries, Ambio, 8, 2/3, 102-109.
Xu, X. & Song, L. (2000). Regional cooperation and the environment: Do ‘dirty’ industries migrate?, Weltwirtschaftliches Archiv, 136, 1, 137-157.
Yıldırım, M., Destek, M.A., Özsoy, F. (2017). Doğrudan yabancı yatırımlar ve Kirlilik Sığınağı Hipotezi, C.Ü. İktisadi ve İdari Bilimler Dergisi, 18, 2, 99-111.
Zeren, F. (2015). Doğrudan yabancı yatırımların CO2 emisyonuna etkisi: Kirlilik Hale Hipotezi mi Kirlilik Cenneti Hipotezi mi?, Journal of Yaşar University, 10, 37, 6442.
Zheng, D. & Shi, M. (2017). Multiple environmental policies and pollution haven hypothesis: Evidence from China’s polluting industries, Journal of Cleaner Production, 141, 295-304.
Copyright (c) 2019 Economics Literature
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Economics Literature is an Open Access journal and provides immediate open access to its contents. The Journal aims to promote the development of global Open Access to scientific information and research. The Publisher provides copyrights of all online published papers (except where otherwise noted) for free use of readers, scientists, and institutions (such as link to the content or permission for its download, distribution, printing, copying, and reproduction in any medium, except change of contents and for commercial use), under the terms of Creative Commons Attribution-NonCommercial (CC BY-NC) License, provided the original work is cited. Written permission is required from the publisher for use of its contents for commercial purposes.
