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

10.3386/w8465 ◽  
2001 ◽  
Author(s):  
Beata Smarzynska ◽  
Shang-Jin Wei
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Pollution Havens

scholarly journals Ecological Footprint, Foreign Direct Investment, and Gross Domestic Production: Evidence of Belt & Road Initiative Countries

2018 ◽  
Vol 10 (10) ◽  
pp. 3527 ◽  
Author(s):  
Hongbo Liu ◽  
Hanho Kim
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Ecological Footprint ◽  
Kuznets Curve ◽  
Impulse Response Functions ◽  
Domestic Production ◽  
Bidirectional Relationship ◽  
Gross Domestic Production ◽  
Panel Vector Autoregression ◽  
Pollution Havens

This research is employed to examine the environmental issues embedded in Belt & Road Initiative (BRI), to be more specific: testify which of these hypotheses: Pollution Havens Hypothesis, Pollution Halo Hypothesis, Environmental Kuznets Curve is in accordance with the current development condition of BRI counties; whether there exists a bidirectional relationship among Ecological Footprint, Gross Domestic Production, Foreign Direct Investment (FDI) in Belt & Road Initiative countries. In this paper, Panel Vector Autoregression is utilized to analyze a dataset of 44-member countries in this initiative, ranges from 1990 to 2016, to empirically testify the environmental evaluation of this project. Results are analyzed on both long-run and short-run cases through Orthogonalized Impulse-Response Functions (IRF). This research displays a great heterogeneity among different target variables, FDI as a main variable of interest does not expose a bidirectional relationship with Ecological Footprint, only Ecological Footprint demonstrates robust influence on FDI. In addition, Pollution Havens Hypothesis is certified to be true for FDI and GDP among Belt & Road Initiative member countries.

scholarly journals Foreign direct investment impact on environment in Serbia in the period 2000-2008

Spatium ◽  
2011 ◽  
pp. 63-70
Author(s):  
Sanja Simeuncevic
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Capital ◽  
Environmental Regulations ◽  
Theoretical Concepts ◽  
Know How ◽  
Pollution Havens

Foreign direct investment (FDI) is currently the largest source of capital reaching developing countries and a stimulant to economic growth. Although FDI benefits the economy of the ?host? country, its impact on the environment can vary from pure exploitation of slack environmental regulations and the creation of ?pollution havens?, environmental political ?chilling? effect, to the transfer of new clean technologies and the formation of ?pollution haloes?. This paper focuses on FDI environmental impact in Serbia, in the period from the opening of the borders to foreign capital in 2000 until 2008, when the FDI in Serbia drastically decreased. The FDI growth of 65 times in the period of five years emphasizes the relevance of this analysis, if sustainable development is to be achieved. This paper envisages FDI impact and visible actual tendencies on Serbian environment, and defines to which of the theoretical concepts it could be arranged. The paper explores whether FDI influence in Serbia resulted in a dominant transfer of pollution intensive industries or a transfer of environmentally friendly technology and know-how, in reducing or improving environmental regulations in Serbia.

scholarly journals Foreign Direct Investment and the Choice of Environmental Policy

2021 ◽  
Author(s):  
Paul Missios ◽  
Halis Murat Yildiz ◽  
Ida Ferrara
Keyword(s):  
Foreign Direct Investment ◽  
Environmental Policy ◽  
Direct Investment ◽  
Environmental Standards ◽  
Profit Shifting ◽  
Playing Field ◽  
Oligopoly Model ◽  
Mode Of Entry ◽  
World Markets ◽  
Pollution Havens

We use a simple two-country oligopoly model of intra-industry trade to examine the implications of foreign direct investment for the pollution haven hypothesis and environmental policy. Countries which lower environmental standards to be more competitive in world markets generate pollution havens if environmental policy is exogenous. However, if FDI is a viable option as a mode of entry, profit-shifting considerations weaken in favour of environmental considerations and FDI recipients tighten environmental policy, reducing incentives to relocate production. Interestingly, when countries are sufficiently similar in their environmental awareness, "grey" countries can become greener than originally "green" countries but firms in the latter still engage in FDI in the former, in spite of the stricter standard they face, in order to level the playing field. We derive conditions under which FDI-receiving countries have incentives to manipulate their environmental standards to prevent or attract FDI, potentially eliminating or creating pollution havens.

scholarly journals Foreign Direct Investment and the Choice of Environmental Policy

2021 ◽  
Author(s):  
Paul Missios ◽  
Halis Murat Yildiz ◽  
Ida Ferrara
Keyword(s):  
Foreign Direct Investment ◽  
Environmental Policy ◽  
Direct Investment ◽  
Environmental Standards ◽  
Profit Shifting ◽  
Playing Field ◽  
Oligopoly Model ◽  
Mode Of Entry ◽  
World Markets ◽  
Pollution Havens

We use a simple two-country oligopoly model of intra-industry trade to examine the implications of foreign direct investment for the pollution haven hypothesis and environmental policy. Countries which lower environmental standards to be more competitive in world markets generate pollution havens if environmental policy is exogenous. However, if FDI is a viable option as a mode of entry, profit-shifting considerations weaken in favour of environmental considerations and FDI recipients tighten environmental policy, reducing incentives to relocate production. Interestingly, when countries are sufficiently similar in their environmental awareness, "grey" countries can become greener than originally "green" countries but firms in the latter still engage in FDI in the former, in spite of the stricter standard they face, in order to level the playing field. We derive conditions under which FDI-receiving countries have incentives to manipulate their environmental standards to prevent or attract FDI, potentially eliminating or creating pollution havens.

Sign in / Sign up

Export Citation Format

Share Document