Foreign Direct Investment and the Environment: Pollution Haven Hypothesis Revisted

Mohammed Aminu Aliyu

No 331376, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: We examine the impact of environmental policy on location decision, the outflow of “dirty” Foreign Direct Investment (FDI). We also examine the impact of “dirty” FDI in host countries, on annual CO2 total emission; total emission of known particulate matters; rising temperature; and total energy use. Using disaggregated FDI data, panel data regression, we found that, “dirty” FDI outflow is positively correlated with environmental policy in eleven OECD countries. But FDI inflow is not significant in explaining the level of pollution and energy use in fourteen non-OECD countries.

Keywords: Environmental Economics and Policy; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 36
Date: 2005
References: View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:331376

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