Globalization and Dirty Industries: Do Pollution Havens Matter?

Jean-Marie Grether and Jaime de Melo

No 9776, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper reviews arguments and evidence on the impact of globalization on the environment, then presents evidence on production and international trade flows in five heavily polluting industries for 52 countries over the period 1981-98. A new decomposition of revealed comparative advantage (RCA) according to geographical origin reveals a delocalization to the South for all heavily polluting industries except non-ferrous metals that exhibits South-North delocalization in accordance with factor-abundance driven response to a reduction in trade barriers. Panel estimation of a gravity model of bilateral trade on the same data set reveals that, on average, polluting industries have higher barriers-to-trade costs (except non-ferrous metals with significantly lower barriers to trade) and little evidence of delocalization in response to a North-South regulatory gap.

JEL-codes: F18 Q28 (search for similar items in EconPapers)
Date: 2003-06
Note: EEE ITI
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (42)

Published as Globalization and Dirty Industries: Do Pollution Havens Matter? , Jean-Marie Grether, Jaime de Melo. in Challenges to Globalization: Analyzing the Economics , Baldwin and Winters. 2004

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Related works:
Chapter: Globalization and Dirty Industries: Do Pollution Havens Matter? (2004)
Working Paper: Globalization and Dirty Industries: Do Pollution Havens Matter? (2003)
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