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Does pollution haven hypothesis hold in newly industrialized countries? Evidence from ecological footprint

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  • Destek, Mehmet Akif
  • Okumus, İlyas

Abstract

This study aims to investigate the validity of pollution haven hypothesis for the period from 1982 to 2013 in ten newly industrialized countries. For this purpose, we examine the relationship between real income, foreign direct investment, energy consumption and ecological footprint using with second generation panel data methodology to take into account the cross-sectional dependence among newly industrialized countries. In doing so, the possible non-linear relationship between foreign direct investment and environmental degradation is also searched. The results show that increased energy consumption and economic growth leads to increase in ecological footprint. Moreover, the U-shaped relationship between foreign direct investment and ecological footprint is confirmed in newly industrialized countries.

Suggested Citation

  • Destek, Mehmet Akif & Okumus, İlyas, 2018. "Does pollution haven hypothesis hold in newly industrialized countries? Evidence from ecological footprint," MPRA Paper 106959, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:106959
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    More about this item

    Keywords

    Pollution haven hypothesis; ecological footprint; newly industrialized countries;
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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