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Pollution Haven Hypothesis and the Role of Dirty Industries in Turkey’s Exports

Author

Listed:
  • Elif Akbostanci

    () (Department of Economics, METU)

  • G.Ipek Tunç

    () (Department of Economics, METU)

  • Serap Türüt-Asik

    () (Department of Economics, METU)

Abstract

Pollution haven hypothesis argues that the industries that are highly pollution intensive i.e. dirty industries, have been migrating from developed economies to the developing world. It is argued that the environmental concerns of the developed economies caused them to enact strict environmental regulations, which have increased the cost of production of the dirty industries at home. On the other hand, the developing countries with their low wages and lax environmental regulations have been attractive alternative producers in these sectors. At the same time this migration is also beneficial for developing countries that are in need of financial resources for industrial development. Consequently, developing countries provide pollution havens for dirty industries. In this process while the dirty industries have been migrating to the developing countries, the developed countries also have become net importers of these sectors. In this study the pollution haven argument for Turkey, for 1994-1997 period is examined. The study focuses on the pollution haven hypothesis from trade perspective by looking at the manufacturing industry data at 4-digit ISIC detail by using the panel data approach. It is found that exports increase as the dirtiness of the industries increases, providing some evidence for the pollution haven hypothesis.

Suggested Citation

  • Elif Akbostanci & G.Ipek Tunç & Serap Türüt-Asik, 2004. "Pollution Haven Hypothesis and the Role of Dirty Industries in Turkey’s Exports," ERC Working Papers 0403, ERC - Economic Research Center, Middle East Technical University, revised Feb 2004.
  • Handle: RePEc:met:wpaper:0403
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    File URL: http://www.erc.metu.edu.tr/menu/series04/0403.pdf
    File Function: First version, 2004
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Indriya, Soca & Widodo, Tri, 2011. "Do Pollution Havens Exist? Evidence from East Asia," MPRA Paper 79924, University Library of Munich, Germany.
    2. Shahbaz, Muhammad & Khraief, Naceur & Uddin, Gazi Salah & Ozturk, Ilhan, 2014. "Environmental Kuznets curve in an open economy: A bounds testing and causality analysis for Tunisia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 34(C), pages 325-336.
    3. Ahmad Zomorrodi & Xiaoyan Zhou, 2016. "Role of EKC and PHH in Determining Environment Quality and their Relation to Economic Growth of a Country," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 3(2), pages 139-144.
    4. Márcia Cristina Silva Paixão & Jorge Madeira Nogueira, 2015. "Foreign direct investment and the environment: the state-of-the art in research," Economía, Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela, vol. 40(39), pages 11-36, January-j.
    5. Chakraborty, Debashis & Mukherjee, Sacchidananda, 2010. "Relationship between Trade, Investment and Environment: A Review of Issues," MPRA Paper 23333, University Library of Munich, Germany.
    6. J. Humberto Lopez & Rashmi Shankar, 2011. "Getting the Most Out of Free Trade Agreements in Central America," World Bank Publications, The World Bank, number 2322.

    More about this item

    Keywords

    Turkey; Pollution Haven Hypothesis; environment; manufacturing;

    JEL classification:

    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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