<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Foreign direct investment (FDI) is an important driver of countries’ economic development. Factors such as looser environmental regulations may cause dirty FDI to flow mainly to developing countries. This is explained by the Pollution Haven Hypothesis. The paper aims to investigate whether the Pollution Haven Hypothesis is valid in Turkey using the nonlinear autoregressive distributed lag (NARDL) approach for the period 1974–2017. The results show that FDI inflows and carbon emissions have asymmetric effects in both the short and long term for Turkey, supporting the Pollution Haven Hypothesis. Furthermore, there is a link between carbon emissions and trade openness, manufacturing and economic growth. Policymakers should develop the policies necessary to transfer clean technologies to Turkey by providing improvements and technical advances for a more efficient energy use.</p>
</abstract>

Foreign direct investment (FDI) is an important driver of countries’ economic development. Factors such as looser environmental regulations may cause dirty FDI to flow mainly to developing countries. This is explained by the Pollution Haven Hypothesis. The paper aims to investigate whether the Pollution Haven Hypothesis is valid in Turkey using the nonlinear autoregressive distributed lag (NARDL) approach for the period 1974–2017. The results show that FDI inflows and carbon emissions have asymmetric effects in both the short and long term for Turkey, supporting the Pollution Haven Hypothesis. Furthermore, there is a link between carbon emissions and trade openness, manufacturing and economic growth. Policymakers should develop the policies necessary to transfer clean technologies to Turkey by providing improvements and technical advances for a more efficient energy use.

An analysis of the Pollution Haven Hypothesis in the context of Turkey: A nonlinear approach

Faculty of Economics and Administrative Sciences, Department of Econometrics

Economics and Business Review

This work is licensed under the Creative Commons Attribution 4.0 International License.

Foreign direct investment (FDI) is an important driver of countries’ economic development. Factors such as looser environmental regulations may cause dirty FDI...

An analysis of the Pollution Haven Hypothesis in the context of Turkey: A nonlinear approach

Published Online: May 09, 2022

Page range: 5 - 23

Received: Dec 03, 2020

Accepted: Feb 28, 2022

DOI: https://doi.org/10.18559/ebr.2022.1.2

Keywords
Pollution Haven Hypothesis, foreign direct investments (FDI), emissions, nonlinear autoregressive distributed lag model, Turkey

© 2022 M. Sinan Temurlenk et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

An analysis of the Pollution Haven Hypothesis in the context of Turkey: A nonlinear approach

Published Online: May 09, 2022

Page range: 5 - 23

Received: Dec 03, 2020

Accepted: Feb 28, 2022

DOI: https://doi.org/10.18559/ebr.2022.1.2

KeywordsPollution Haven Hypothesis, foreign direct investments (FDI), emissions, nonlinear autoregressive distributed lag model, Turkey

© 2022 M. Sinan Temurlenk et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
Pollution Haven Hypothesis, foreign direct investments (FDI), emissions, nonlinear autoregressive distributed lag model, Turkey