Globalization and the Environment: A Survey of the Empirical Evidence

By Nadia Doytch.

Published by The International Journal of Environmental Sustainability

Format Price
Article: Print $US10.00
Article: Electronic $US5.00

Foreign direct investment (FDI) accounts for a large part the new international economic activity. Its environmental spillovers are still poorly understood. There are two conflicting hypotheses in the environmental literature: the FDI “halo effect hypothesis” that suggest that FDI benefits the environment and the “pollution haven hypothesis” that suggests that it harms the environment. The goal of this study is to critically examine the analytical framework and the empirical evidence to settle the FDI “halo” vs. “pollution haven” argument in the literature. In the process of this analysis the paper also seeks to answer whether the FDI absorbing sector, industry and level of development of host country matters for the nature and size of the potential spillovers.

Keywords: FDI Halo Hypothesis, Pollution Haven Hypothesis, Environmental Kuznets Curve

The International Journal of Environmental Sustainability, Volume 8, Issue 4, pp.17-24. Article: Print (Spiral Bound). Article: Electronic (PDF File; 246.015KB).

Dr. Nadia Doytch

Assistant Professor of Economics, Department of Economics, City University of New York Brooklyn College and Asian Institute of Management, Brooklyn, New York, USA

Dr. Nadia Doytch is an Assistant Professor of Economics at the City University of New York Brooklyn College. She has earned her Ph.D. in economics from City University of New York. Her research areas span international economics and economic development. She has published on the impact of the sectoral distribution of FDI on economic growth (Journal of International Money and Finance), on the employment effects of Mergers and Acquisitions (Applied Economics Letters) and other topics. Dr. Doytch’s current research focuses on environmental spillovers from FDI, impact of FDI on child labor in developing countries, and on behavior of social expenditures over the business cycle. Dr. Doytch has previously worked as a consultant on the Credit Suisse Intangible Infrastructure Investment Index at Credit Suisse, NY.