Relationship Between Trade, Investment and Environment: A Review of Issues
Indian Institute of Foreign Trade
National Institute of Public Finance and Policy
June 17, 2010
The inter-linkage between economic openness and environmental repercussions is a widely researched area. The current study contributes in the existing pool of research by conducting a cross-country empirical analysis for the year 2008 by exploring the interrelationship between openness indicators (trade and investment) and environmental performance of a country. For this purpose, the analysis separately considers export orientation, import orientation, FDI inwardness and FDI outwardness of the countries in different variations of the proposed empirical model. The regression results do not provide strong support to the Pollution Haven Hypothesis (PHH). The findings also confirm a relationship between socio-economic and socio-political factors in a country and its environmental performance.
Number of Pages in PDF File: 32
Keywords: Trade and Environment, International Investment
JEL Classification: F18, F21working papers series
Date posted: June 18, 2010
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