Relationship Between Trade, Investment and Environment: A Review of Issues

32 Pages Posted: 18 Jun 2010

See all articles by Debashis Chakraborty

Debashis Chakraborty

Indian Institute of Foreign Trade

Sacchidananda Mukherjee

National Institute of Public Finance and Policy

Date Written: June 17, 2010

Abstract

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.

Keywords: Trade and Environment, International Investment

JEL Classification: F18, F21

Suggested Citation

Chakraborty, Debashis and Mukherjee, Sacchidananda, Relationship Between Trade, Investment and Environment: A Review of Issues (June 17, 2010). Available at SSRN: https://ssrn.com/abstract=1626069 or http://dx.doi.org/10.2139/ssrn.1626069

Debashis Chakraborty (Contact Author)

Indian Institute of Foreign Trade ( email )

New Delhi, Delhi 110016
India
91 9818447900 (Phone)
91 11 26853956 (Fax)

Sacchidananda Mukherjee

National Institute of Public Finance and Policy ( email )

18/2, Satsang Vihar Marg
Special Institutional Area
New Delhi, Delhi 110067
India
+919868421239 (Phone)

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