An analysis of the Pollution Haven Hypothesis in the context of Turkey: A nonlinear approach

Foreign direct investment (FDI) is an important driver of countries’ economic development. Factors such as looser environmental regulations may cause dirty FDI to flow mainly developing countries. This explained by the Pollution Haven Hypothesis. The paper aims investigate whether Hypothesis valid in Turkey using nonlinear autoregressive distributed lag (NARDL) approach for period 1974–2017. results show that inflows and carbon emissions have asymmetric effects both short long term Turkey, supporting Furthermore, there a link between trade openness, manufacturing growth. Policymakers should develop policies necessary transfer clean technologies providing improvements technical advances more efficient energy use.