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The pollution haven hypothesis: a geographic economy model in a comparative study

Sonia Ben Kheder () and Natalia Zugravu-Soilita
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Sonia Ben Kheder: Centre d'Economie de la Sorbonne, https://centredeconomiesorbonne.univ-paris1.fr

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: Although based on theoretical foundations, the pollution haven hypothesis stating that heterogenous environmental regulations between countries influence multinational firms' location decisions, has never been clearly proven empirically. In this study, we reexamine this hypothesis by a fresh take on both its theoretical and empirical aspects. While applying a geographic economy model on French firm-level data, we confirm the pollution haven hypothesis for a global sample. Through sensitivity analysis, we validate it for Central and Eastern European countries, emerging and high-income OECD countries, but not for the major part of the Commonwealth of Independent States countries. Finally, we show that the pollution haven hypothesis is confirmed in the strongest manner for emerging economies.

Keywords: FDI; environmental regulation; economic geography; pollution haven hypothesis (search for similar items in EconPapers)
JEL-codes: F12 F18 Q28 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2008-04
New Economics Papers: this item is included in nep-env, nep-reg and nep-tra
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ftp://mse.univ-paris1.fr/pub/mse/CES2008/V08083.pdf (application/pdf)

Related works:
Working Paper: The Pollution Haven Hypothesis: A Geographic Economy Model in a Comparative Study (2008) Downloads
Working Paper: The Pollution Haven Hypothesis: A Geographic Economy Model in a Comparative Study (2008) Downloads
Working Paper: The pollution haven hypothesis: a geographic economy model in a comparative study (2008) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:v08083

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