Jump to ContentJump to Main Navigation
Show Summary Details
More options …

The B.E. Journal of Economic Analysis & Policy

Editor-in-Chief: Ludwig, Sandra / Schmitz, Hendrik

Ed. by Auriol, Emmanuelle / Barigozzi, Francesca / Brunner, Johann / Fleck, Robert / Mastrobuoni, Giovanni / Mendola, Mariapia / Requate, Till / de Vries, Frans / Wenzel, Tobias / Zulehner, Christine

4 Issues per year


IMPACT FACTOR 2017: 0.306
5-year IMPACT FACTOR: 0.492

CiteScore 2017: 0.50

SCImago Journal Rank (SJR) 2017: 0.414
Source Normalized Impact per Paper (SNIP) 2017: 0.531

Online
ISSN
1935-1682
See all formats and pricing
More options …
Volume 3, Issue 2

Issues

Volume 6 (2006)

Volume 4 (2004)

Volume 2 (2002)

Volume 1 (2001)

Pollution Havens and Foreign Direct Investment: Dirty Secret or Popular Myth?

Beata Smarzynska Javorcik / Shang-Jin Wei
Published Online: 2003-12-31 | DOI: https://doi.org/10.2202/1538-0645.1244

Abstract

The “pollution haven” hypothesis refers to the possibility that multinational firms, particularly those engaged in highly polluting activities, relocate to countries with weaker environmental standards. Despite the plausibility and popularity of this hypothesis, the existing literature has found only limited evidence to support it. To enhance our ability to detect the possible “dirty secret,” this study makes improvements in four areas. First, we focus on investment flows from multiple countries to 25 economies in Eastern Europe and the former Soviet Union. Transition countries are a suitable region for studying this question, as they offer a large variation in terms of environmental standards. Second, we take into explicit account the effect of host country corruption. Third, we include information on both the polluting-intensity of the potential investor and the environmental stringency in the potential host country, which allows us to test whether dirty industries are relatively more attracted to locations with weak standards. And fourth, we rely on firm-level rather than industry-level data. Despite these improvements, we find no support for the “pollution haven” hypothesis. If anything, firms in less polluting industries are more likely to invest in the region. We find no systematic evidence that FDI from “dirtier” industries is more likely to go to countries with weak environmental regulations.

Keywords: Pollution; corruption; foreign direct investment

About the article

Published Online: 2003-12-31


Citation Information: Contributions in Economic Analysis & Policy, Volume 3, Issue 2, ISSN (Online) 1538-0645, DOI: https://doi.org/10.2202/1538-0645.1244.

Export Citation

©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston.Get Permission

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

[1]
Wen Jun, Muhammad Zakaria, Syed Shahzad, and Hamid Mahmood
Sustainability, 2018, Volume 10, Number 11, Page 3859
[2]
Yantuan Yu, Yun Zhang, and Xiao Miao
International Journal of Environmental Research and Public Health, 2018, Volume 15, Number 10, Page 2304
[4]
Yingyuan Guo, Xingneng Xia, Sheng Zhang, and Danping Zhang
Sustainability, 2018, Volume 10, Number 4, Page 940
[5]
Zhimin Zhou, Xinyue Ye, and Xiangyu Ge
Sustainability, 2017, Volume 9, Number 4, Page 674
[6]
Jitao Tang
Environmental and Resource Economics, 2015, Volume 60, Number 4, Page 549

Comments (0)

Please log in or register to comment.
Log in