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

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  • Chakraborty, Debashis
  • Mukherjee, Sacchidananda

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.

Suggested Citation

  • Chakraborty, Debashis & Mukherjee, Sacchidananda, 2010. "Relationship between Trade, Investment and Environment: A Review of Issues," MPRA Paper 23333, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:23333
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    References listed on IDEAS

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    Cited by:

    1. Syed Sundus Raza & Anwar Hussain, 2016. "The Nexus of Foreign Direct Investment, Economic Growth and Environment in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(2), pages 95-111.

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    More about this item

    Keywords

    Trade and Environment; International Investment;

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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