dc.contributor.author |
Wagner, UJ |
|
dc.contributor.author |
Timmins, CD |
|
dc.date.accessioned |
2010-03-09T15:42:59Z |
|
dc.date.issued |
2009-06-01 |
|
dc.identifier.issn |
0924-6460 |
|
dc.identifier.uri |
https://hdl.handle.net/10161/2059 |
|
dc.description.abstract |
Does environmental regulation impair international competitiveness of pollution-intensive
industries to the extent that they relocate to countries with less stringent regulation,
turning those countries into "pollution havens"? We test this hypothesis using panel
data on outward foreign direct investment (FDI) flows of various industries in the
German manufacturing sector and account for several econometric issues that have been
ignored in previous studies. Most importantly, we demonstrate that externalities associated
with FDI agglomeration can bias estimates away from finding a pollution haven effect
if omitted from the analysis. We include the stock of inward FDI as a proxy for agglomeration
and employ a GMM estimator to control for endogenous time-varying determinants of
FDI flows. Furthermore, we propose a difference estimator based on the least polluting
industry to break the possible correlation between environmental regulatory stringency
and unobservable attributes of FDI recipients in the cross-section. When accounting
for these issues we find robust evidence of a pollution haven effect for the chemical
industry. © 2008 Springer Science+Business Media B.V.
|
|
dc.format.mimetype |
application/pdf |
|
dc.language.iso |
en_US |
|
dc.publisher |
Springer Science and Business Media LLC |
|
dc.relation.ispartof |
Environmental and Resource Economics |
|
dc.relation.isversionof |
10.1007/s10640-008-9236-6 |
|
dc.title |
Agglomeration effects in foreign direct investment and the pollution haven hypothesis |
|
dc.type |
Journal article |
|
duke.contributor.id |
Timmins, CD|0331720 |
|
pubs.begin-page |
231 |
|
pubs.end-page |
256 |
|
pubs.issue |
2 |
|
pubs.organisational-group |
Duke |
|
pubs.organisational-group |
Economics |
|
pubs.organisational-group |
Environmental Sciences and Policy |
|
pubs.organisational-group |
Nicholas School of the Environment |
|
pubs.organisational-group |
Trinity College of Arts & Sciences |
|
pubs.publication-status |
Published |
|
pubs.volume |
43 |
|