Publication:
Pollution Havens and Foreign Direct Investment : Dirty Secret or Popular Myth?

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dc.contributor.authorSmarzynska, Beata K.
dc.contributor.authorWei, Shang-Jin
dc.date.accessioned2014-08-21T16:56:28Z
dc.date.available2014-08-21T16:56:28Z
dc.date.issued2001-09
dc.description.abstractThe "pollution haven" hypothesis refers to the possibility that multinational firms, particularly those engaged in highly polluting activities, relocate to countries with weaker environmental standards. Despite the plausibility and popularity of this hypothesis, there is little evidence to support it. The authors identify four obstacles that may have impeded researchers' ability to find evidence in favor of the "pollution haven" hypothesis: 1) The possibility that some features of host countries, such as bureaucratic corruption, may deter inward foreign direct investment and also be positively correlated with lax environmental standards. Omitting this information in statistical analyses may produce misleading results. 2) The possibility that country- or industry-level data, typically used in the literature, may have masked the effect at the firm level. 3) Difficulties associated with measuring environmental standards of the host countries. 4) Difficulties associated with the measuring the pollution intensity of the multinational firms. The authors attempt to surmount these obstacles by explicitly taking into account corruption in host countries and using a firm-level data set on investment projects in 24 transition economies. With these improvements, the authors find some support for the "pollution haven" hypothesis, but evidence is still weak and does not survive numerous robustness checks.en
dc.identifierhttp://documents.worldbank.org/curated/en/2001/09/1614728/pollution-havens-foreign-direct-investment-dirty-secret-or-popular-myth
dc.identifier.doi10.1596/1813-9450-2673
dc.identifier.urihttps://hdl.handle.net/10986/19555
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 2673
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectABATEMENT
dc.subjectABATEMENT CAPITAL
dc.subjectABATEMENT COSTS
dc.subjectAIR POLLUTION
dc.subjectAIR QUALITY
dc.subjectBACTERIA
dc.subjectBIOCHEMICAL OXYGEN DEMAND
dc.subjectCARBON
dc.subjectCARBON DIOXIDE
dc.subjectCHEMICAL POLLUTION
dc.subjectCOAL
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCONSTRUCTION
dc.subjectCORPORATE TAXES
dc.subjectDEVELOPED COUNTRIES
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC ANALYSIS
dc.subjectEFFLUENT
dc.subjectEMISSION
dc.subjectEMISSION STANDARDS
dc.subjectEMISSIONS
dc.subjectEMISSIONS LEVELS
dc.subjectEMPIRICAL ANALYSIS
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEMPIRICAL STUDIES
dc.subjectENVIRONMENTAL IMPACT
dc.subjectENVIRONMENTAL IMPACT ASSESSMENT
dc.subjectENVIRONMENTAL MANAGEMENT
dc.subjectENVIRONMENTAL PERFORMANCE
dc.subjectENVIRONMENTAL POLICIES
dc.subjectENVIRONMENTAL POLICY
dc.subjectENVIRONMENTAL PROTECTION
dc.subjectENVIRONMENTAL REGULATIONS
dc.subjectEXPENDITURES
dc.subjectGAS
dc.subjectGREASE
dc.subjectIMPORTS
dc.subjectINCOME
dc.subjectLABOR COSTS
dc.subjectLAKES
dc.subjectLEGISLATION
dc.subjectMPC
dc.subjectOIL
dc.subjectOXYGEN
dc.subjectPASTURES
dc.subjectPOLITICAL ECONOMY
dc.subjectPOLLUTANT
dc.subjectPOLLUTION
dc.subjectPOLLUTION ABATEMENT
dc.subjectPOLLUTION CONTROL
dc.subjectPOLLUTION CONTROL LAWS
dc.subjectPOLLUTION INTENSITY
dc.subjectPROPERTY RIGHTS
dc.subjectSULFUR
dc.subjectTAX RATES
dc.subjectTOXIC SUBSTANCES
dc.subjectTOXICITY
dc.subjectTOXICS
dc.subjectTRANSBOUNDARY EFFECTS OF INDUSTRIAL ACCIDENTS
dc.subjectTREATIES
dc.subjectWASTE
dc.subjectWATER POLLUTANT
dc.subjectWATER POLLUTANTS MULTINATIONAL ENTERPRISES
dc.subjectINDUSTRIAL POLLUTION
dc.subjectENVIRONMENTAL STANDARDS
dc.subjectCORRUPTION IN POLITICS
dc.subjectSTATISTICAL ANALYSIS
dc.subjectTRANSITIONAL ECONOMIES
dc.subjectINVESTMENT PROJECTS
dc.subjectFOREIGN DIRECT INVESTMENTS
dc.subjectPOLLUTION INTENSITY
dc.subjectINTERNATIONAL TREATIES
dc.subjectAIR QUALITY
dc.subjectWATER QUALITY
dc.subjectPOLLUTION ABATEMENT
dc.subjectMULTINATIONAL ENTERPRISES
dc.titlePollution Havens and Foreign Direct Investment : Dirty Secret or Popular Myth?en
dspace.entity.typePublication
okr.crossref.titlePollution Havens and Foreign Direct Investment: Dirty Secret or Popular Myth?
okr.date.disclosure2001-09-30
okr.date.doiregistration2025-04-10T09:28:13.721453Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2001/09/1614728/pollution-havens-foreign-direct-investment-dirty-secret-or-popular-myth
okr.globalpracticeGovernance
okr.globalpracticeWater
okr.guid311051468766825282
okr.identifier.doi10.1596/1813-9450-2673
okr.identifier.externaldocumentum000094946_01092804353551
okr.identifier.internaldocumentum1614728
okr.identifier.reportWPS2673
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2001/10/12/000094946_01092804353551/Rendered/PDF/multi0page.pdfen
okr.themeEnvironment and natural resources management
okr.topicWater Resources::Water and Industry
okr.topicEnvironmental Economics and Policies
okr.topicPublic Sector Development::Decentralization
okr.topicPollution Management and Control
okr.topicWater Supply and Sanitation::Sanitation and Sewerage
okr.unitTrade, Development Research Group
okr.volume1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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