Impact on the Environment of Thailand's Trade with OECD Countries
In: Asia-Pacific Trade and Investment Review
The impact of trade liberalization on the environment is a matter of debate. Two conflicting hypotheses have emerged from the debate. One, the pollution haven hypothesis, suggests that the developed countries impose tougher environmental policies than do the developing countries, which results in distortion of existing patterns of comparative advantage. Thus, the polluting industries shift operations from the developed to the developing countries; developing countries therefore become "pollution havens." The second hypothesis, the factor endowment hypothesis, predicts that trade liberalization will result in trade patterns consistent with the Heckscher-Phlin-Vanek theory of comparative advantage based on factor endowment differentials. Rich countries are well endowed with capital. Since capital-intensive goods are often also pollution-intensive, factor-endowment theories of international trade predict that rich countries specialize in polluting goods. Thus, the manifestation of the pollution haven hypothesis is in direct conflict with the factor endowment hypothesis. This debate is of great concern among economists, environmentalists and the World Trade Organization.
|This chapter was published in: ||This item is provided by United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) in its series STUDIES IN TRADE AND INVESTMENT with number
aptir2414_kakali.||Handle:|| RePEc:unt:ecchap:aptir2414_kakali||Contact details of provider:|| Postal: The United Nations Building, Rajadamnern Nok Avenue, Bangkok 10200|
Phone: (66-2) 288-1234
Fax: (66-2) 288-1000
Web page: http://www.unescap.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Andreas Waldkirch & Munisamy Gopinath, 2004. "Pollution Haven or Hythe? New Evidence from Mexico," International Trade 0412005, EconWPA.
- Machado, Giovani & Schaeffer, Roberto & Worrell, Ernst, 2001. "Energy and carbon embodied in the international trade of Brazil: an input-output approach," Ecological Economics, Elsevier, vol. 39(3), pages 409-424, December.
When requesting a correction, please mention this item's handle: RePEc:unt:ecchap:aptir2414_kakali. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mia Mikic)
If references are entirely missing, you can add them using this form.