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Is there a trade-off between financing current account deficits and environmental deterioration in developing countries? An empirical investigation for the validity of the pollution haven hypothesis        
Yazarlar
Prof. Dr. Ümit BULUT
Kırşehir Ahi Evran Üniversitesi, Türkiye
Prof. Dr. Gülbahar ÜÇLER
Türkiye
Doç. Dr. Hande AKSÖZ YILMAZ
Türkiye
Dila Nur Başaran
Özet
The impact of foreign direct investment (FDI) on environmental quality has been discussed in the environmental economics literature over the last decades. Within this scope, the pollution haven hypothesis (PHH) postulates that FDI inflows can cause environmental degradation in developing countries. Using data over the period 1993–2018 for 10 developing countries with current account deficits, this paper aims to test the validity of the PHH. Therefore, the paper examines whether or not developing countries face off a trade-off between financing current account deficits and environmental deterioration. The paper employs panel data methods that consider cross-sectional dependence. The empirical findings show that foreign direct investment inflows have no impact on environment, meaning the PHH does not dominate for these countries. Hence, the findings indicate that there is no trade-off between financing current account deficits and environmental deterioration.
Anahtar Kelimeler
Current account deficit | Environmental deterioration | Foreign direct investment | Panel data analysis | Pollution haven hypothesis
Makale Türü Özgün Makale
Makale Alt Türü SSCI, AHCI, SCI, SCI-Exp dergilerinde yayımlanan tam makale
Dergi Adı Environmental Science and Pollution Research
Dergi ISSN 0944-1344
Dergi Tarandığı Indeksler SCI-Expanded
Dergi Grubu Q2
Makale Dili İngilizce
Basım Tarihi 03-2022
Doi Numarası 10.1007/s11356-022-19819-2
Makale Linki http://dx.doi.org/10.1007/s11356-022-19819-2