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dc.contributor.authorKoubi, Vallyen_US
dc.contributor.authorBernauer, Thomasen_US
dc.description.abstractWe study the effects of economic globalization (liberalization of international trade and investment flows) on the environment in the context of a model that integrates standard factor endowment theory (FET) with the pollution haven hypothesis (PHH). Both FET and PHH imply that inward investment burdens the environment while outward investment is favorable for environmental quality. The model suggests that FET and PHH can be discriminated on the basis of the effects of the interaction between trade in goods and inward FDI on the environment. In particular, the interaction is positive under the former and negative under the latter theory. We examine the effects of FDI for SO2 concentrations in a large set of countries during the last two decades. We find that inward FDI is associated with higher concentrations while outward FDI is associated with lower concentrations. And that increased FDI amplifies the effects of increased trade. The last result constitutes prima facie evidence in favor of the PHH over the FET.en_US
dc.publisherVerein für Socialpolitik, Ausschuss für Entwicklungsländer Göttingenen_US
dc.relation.ispartofseriesProceedings of the German Development Economics Conference, Zürich 2008 24en_US
dc.subject.keywordpollution havenen_US
dc.subject.keywordfactor endowmentsen_US
dc.titleGlobalization and the environmenten_US
dc.typeConference Paperen_US
Appears in Collections:Proceedings of the German Development Economics Conference, 2008 (Zürich)

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