Foreign direct investment (FDI) is one of the driving forces binding countries into closer economic interdependence. The rapid increase in FDI flows has generated considerable debate about its environmental implications, in particular the impacts on environmental quality in the investment host...

"One of the most contentious debates today is whether pollution-intensive industries from rich countries relocate to poor countries with weaker environmental standards, turning them into "pollution havens." Empirical studies to date show little evidence to support the pollution haven hypothesis,...