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The Critical Review of the Pollution Haven Hypothesis (PHH)

Fozia Latif Gill, K Kuperan Viswanathan and Mohd Karim ()
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Fozia Latif Gill: Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia, Malaysia,
K Kuperan Viswanathan: Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia, Malaysia

International Journal of Energy Economics and Policy, 2018, vol. 8, issue 1, 167-174

Abstract: This paper evaluates the theoretical and empirical basis of the Pollution Haven Hypothesis (PHH) and Porter Hypothesis. The PHH claims that owing to international trade and Foreign Direct Investment (FDI), the developing countries have become the pollution haven for the advanced countries. The Porter Hypothesis portraits an opposite picture than the PHH. According to, the Porter Hypothesis, the FDI in home country induce the induction of more advanced and clean technologies that lead to cleaner environment. In the literature, there is mixed support for these opposing hypotheses. This paper therefore, recommends further rigours research that aims at to find out the true link between trade, FDI and environmental degradation.

Keywords: Pollution; Trade; FDI (search for similar items in EconPapers)
JEL-codes: Q1 Q2 Q4 (search for similar items in EconPapers)
Date: 2018
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