Pollution Haven Hypothesis or Factor Endowment Hypothesis: Theory and Empirical Examination for the US and China

Umed Temurshoev
Authors registered in the RePEc Author Service: Umed Temursho

CERGE-EI Working Papers from The Center for Economic Research and Graduate Education - Economics Institute, Prague

Abstract: This paper examines how free international trade affects the environment in the developed and less developed worlds. Using input-output techniques, tests of the pollution haven hypothesis (PHH) and the factor endowment hypothesis (FEH) for the US and China were empirically carried out. We found that China gains and the US lose in terms of CO2, SO2 and NOx emissions from increased trade, and the US is not exporting capital intensive goods. Thus both the PHH and the FEH are rejected, which implies that explaining the trade of pollutants remains an unresolved puzzle.

Keywords: International trade; Environment; Pollution haven; Factor endowment; Inputoutput analysis. (search for similar items in EconPapers)
JEL-codes: D57 F18 Q32 (search for similar items in EconPapers)
Date: 2006-03
New Economics Papers: this item is included in nep-cna, nep-ene, nep-env, nep-int, nep-res, nep-sea and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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