The Pollution Haven Hypothesis: A Geographic Economy Model in a Comparative Study

33 Pages Posted: 26 Sep 2008

See all articles by Sonia Ben Kheder

Sonia Ben Kheder

Université Paris I Panthéon-Sorbonne

Natalia Zugravu-Soilita

University of Versailles Saint-Quentin-en-Yvelines

Date Written: September 11, 2008

Abstract

Although based on theoretical foundations, the pollution haven hypothesis has never been clearly proven empirically. In this study, we re-examine 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 hypothesis for the 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

JEL Classification: F12, F18, Q28

Suggested Citation

Ben Kheder, Sonia and Zugravu-Soilita, Natalia, The Pollution Haven Hypothesis: A Geographic Economy Model in a Comparative Study (September 11, 2008). FEEM Working Paper No. 73.2008, Available at SSRN: https://ssrn.com/abstract=1266705 or http://dx.doi.org/10.2139/ssrn.1266705

Sonia Ben Kheder

Université Paris I Panthéon-Sorbonne ( email )

17, rue de la Sorbonne
Paris, IL 75005
France

Natalia Zugravu-Soilita (Contact Author)

University of Versailles Saint-Quentin-en-Yvelines ( email )

47 Bd Vauban
Guyancourt, 78280
France

HOME PAGE: http://sites.google.com/site/nataliazugravu

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