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Volume 8 (22) Number 1 pp. 5-23

M. Sinan Temurlenk, Anıl Lögün

Atatürk University, Faculty of Economics and Administrative Sciences, Department of Econometrics

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

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.

pub/2022_1_5.pdf Full text available in Adobe Acrobat format:
http://www.ebr.edu.pl/volume22/issue1/2022_1_5.pdf
Keywords: Pollution Haven Hypothesis, foreign direct investments (FDI), emissions, nonlinear autoregressive distributed lag model, Turkey.

DOI: 10.18559/ebr.2022.1.2

For citation:

MLA Temurlenk, M. Sinan, and Anıl Lögün. "An analysis of the Pollution Haven Hypothesis in the context of Turkey: A nonlinear approach." Economics and Business Review EBR 22.1 (2022): 5-23. DOI: 10.18559/ebr.2022.1.2
APA Temurlenk, M. S., & Lögün, A. (2022). An analysis of the Pollution Haven Hypothesis in the context of Turkey: A nonlinear approach. Economics and Business Review EBR 22(1), 5-23 DOI: 10.18559/ebr.2022.1.2
ISO 690 TEMURLENK, M. Sinan, LÖGÜN, Anıl. An analysis of the Pollution Haven Hypothesis in the context of Turkey: A nonlinear approach. Economics and Business Review EBR, 2022, 22.1: 5-23. DOI: 10.18559/ebr.2022.1.2