Theory and intuition tell us that the imposition of stringent environmental policies by a given country will reduce its net exports of commodities produced using pollution-intensive industries. It is therefore surprising that many empirical studies of international commodity trade have failed to …nd evidence of this e¤ect. This study o¤ers a new, highly focused test of the pollution haven hypot...

introduction: the role of economic factors in pollution and environmental degradation is one of the major issues in economic and environmental studies that many researchers have addressed in their studies. one of the issues in the field of environment to which less attention has been paid is the effect of economic factors such as the openness of the economy on water resource pollution. in this ...

This paper develops a common agency model to analyze the strategic interaction between governments in regulating polluting multinationals. We show that when a firm has private information about its production technology relating output to pollution that is difficult to monitor, the information rent extraction behavior of non-cooperative governments will work against the “pollution haven” hypoth...

After proposing a simple theoretical framework to illustrate the importance of third-country e ects in empirical studies of the Pollution Haven Hypothesis, we test the model using statelevel panel data on inbound US FDI and relative abatement costs. Our analysis reveals that while own state attributes rarely have statistically signi cant e ects on own inbound FDI when aggregated over all manufa...