2016testthehypothesisinthecaseoffive ASEANcountriesIndonesia, Malaysia,thePhilippines,SingaporeandThailandbypanelquantileregressionmodel.FDI,tradeopenne ss, industrialoutputandenergycons
Trang 1TheImpactsofTradeOpennessand Foreign
LeThiThanhMa
iL e HoangAnh
Abstra
ct
KimTaegi
ChonnamNationalUniversity,Kore
a
ThispaperinvestigatestherelationshipbetweentradeopennessandCO2e m i s s i o n sinVietnamusingth
ed a t a from1986to2014.WeexaminetheconsistencyoftheenvironmentalKuznetscurvehypot hesis(EKC)a n d thepollutionheavenhypothesis(PHH)inVietnamcase.In1986Vietnamgovernme ntbegantolaunchf r e e
-m a r k e t econo-micrefor-ms Sincethen,Vietna-mecono-myexperiencedthebreakthroughinnovati onintradeopenness.Ontheotherhand,VietnamwitnessagrowinglevelofCO2emission.Theannualgrowthr ateofCO2emissionduringtheperiodis7.26%,andthatoftradevolumeis16.11%.Theempiricalresultss howthattherelationshipbetweenCO2e m i s s i o n s
andincomepercapitaisaninvertedU-shaped,consistentwithtoEKChypothesis.Wealsofindthatthepollutionheavenhypothesisissupp ortedinthatenergyuseandinternationaltradecontributetoairpollution,butbecomingafullmember ofWTObringspositiveeffecttoVietnameseenvironment
JEL:F18,O44
H H )
1.Introduction
Pollutionheavenhypothesis(PHH)arguesthatdevelopedcountriestendtotransferpollution-intensiveindustriestodevelopingcountries.Weakenvironmentalregulationsandlowindustrialwaste treatmentcosti n poorcountriesarefactorswhichattractrichcountriestoinvestindirtymanufacturingindu stries.Therefore,i t canbesuggestedthattradeopennessandFDIinflowmaybe one offactorswhichhasanegativeimpactonpollutionindevelopingcountries
EnvironmentalKuznetsCurve(EKC)wasfirstintroduced
bySimonKuznetsinthe1950sand1960s.EKChypothesisindicatestheinvertedUshapedcurverelations hipbetweenincomeandenvironmentalpollution.I t canbeinterpretedthatasincomelevelincrease,p ollutionlevelwillfirstriseuntilreachtheturningpointa n d thendecline
ManypapersevaluatetheimpactoftradeopennessonVietnameseeconomy.Tothebestofourknowled ge,h o w e v e r , thereh a s notbeena n y r e s e a r c h regardingtheinfluenceoftradeopennesso n e
n v i r o n m e n t i n Vietnam.Ontheonehand,in1986Vietnamgovernmentbegantorelaxrestrictions andlaunchfree-marketeconomicreformswithaim atattractingforeigninvestment, openingthegoodsmarket,trading with foreigncountries Since then,Vietnameconomyexperiencedthebreakthroughinnovationintradeopenness.Ontheotherhand,
r e c e n t l y V i e t n a m witnessa growingl e v e l ofCO2emission.W e aremotivatedtoinvestigatewhethert hereisrelationshipbetweentradeopennessandairpollutioninVietnamthroughtestingthevalidity
Trang 2ofEKCandPHH.Weattempttoshedfurtherlightonthecorrelationbetweenthepollutionandecono micd e v e l o p m e n t focusonthetradeopennessprocessinVietnam,alowaverageincomecountry.Th isisthefirst
paperconsidertheimpactoftradeopennesseventsontheCO2e m i s s i o ninVietnam.Weusetimeseriesdata oftheperiodof1986-2014.RepresentativepollutantisCO2emission.
With thepurposeoftestingvalidityofEKChypothesis,weemployOLSregressiontodefinethe
relationshipb e t w e e n CO2e m i s s i o na n d G D P T h e outcomes h o w s e v i d e n c e tos u p p o r t thish ypothesis,presentingtheinvertedUshapeofthisnexus.Wealsoobservethepositivecorrelationsbetweeni nternationaltradevolumeandairpollution
inVietnam,sowecannotdenytheexistenceofPHHinVietnam.Inaddition,w e findthatwhereasjoining WTOhelpsimprovingtheairquality,developingtheforeigntradeactivitiescontributestotheCO2
thesefindings,implicationsforVietnamesegovernmentaresettingthestricterregulationsonproducti onandusingenergy,restrictingtheexportsofthesepollutionintensiveproductsandencouragingtheexp ortsofgreenproducts
Therestofpaperproceedsasfollows.Section2reviewsthemainliteratureinvestigatingtherelation shipbetweenCO2e m i s s i o nandeconomicdevelopmentandtradeopenness.Section3representsanove rviewoftradeopennessprocessinVietnam.Insection4,wedescribethedata,introducethemodelan dpresentthee m p i r i c a l results.Thelastsectioncontainsabriefconclusion
2.LiteratureReview
BasedonPHHandEKCtheory,anumberofempiricalstudiesexaminethe
relationshipbetweenFDIandenvironmentalpollution.Manyauthorsfindempiricalevidencesthatsupp ortforPHHind e v e l o p i n g countries.Hoffmann,etal
(2005)examinetherelationshipbetweenFDIandpollutionon112countriesover1 5
-2 8 years.T h e y u s e GrangerCausalityT e s t t o a n a l y z e p a n e l d a t a a n d c o n c l u d e thatFDIh a
s positive
relationshipw i t h CO2e m i s s i o n si n l o w a n d middlei n c o m e c o u n t r i e s , w h e r e a s t h e resultofh i g h i n
c o m e
countriesisnotobtained.Ren,etal
(2014)applyinChinacase,conductanalysisoninternationaltrade,FDI
andCO2emissio nsnexusinChina’sindustrial
sectors.Bytwo-stepGMMestimator, authorsillustratethe
positiverelationshipofFDI-CO2e m i s s i o n sandtradesurplus-CO2e m i s s i o n s Empirical results also claimthe
invertedUshapeEKCwhichisrepresentedbycoefficient square ofindustrial sector’s income percapita
Contributingtoliterature,BaekandKoo(2009)examinetheFDI-economicgrowth-environmentnexusinthe
caseofChinaandIndiabyemployingcointegrationanalysisandavectorerrorcorrectionmodel.Chinashows thatFDIincreasestheCO2e m i s s i o n sinbothlongrunandshortrun,whileIndiastatesasmallimpacto n
pollution.ForGDP,authorsindicatethatGDPmakespollutionworsen.Observingthesamefinding,Solarin, etal
(2017)supportPHHinGhana.TheyuseARDLmethodtoanalyzethedifferent timeseriesmodelsin Ghanafortheperiodof1980-2012.GDP,GDPsquare,energy
consumption,renewableenergyconsumption,
fossilf u e l energyc o n s u m p t i o n , FDI,institutionalquality,financiald e v e l o p m e n t , u r b a n i z a t i o
n a n d trade
Trang 3opennessareusedasdeterminantsofthemodel.AuthorsshowthatFDI,GDP,urbanpopulation,financi al
developmentandinternationaltradeincreaseCO2l e v e l ,whereasinstitutionalqualityhasnegativeimpact on
CO2emission.
Besidess t u d i e s s h o w i n g outcomess u p p o r t i n g f o r P H H , manya u t h o r s fi n d eviden cest o r e j e c t t h i s
hypothesis.B i r d s a l l a n d W h e e l e r ( 1 9 9 3 ) , a studyi n LatinA m e r i c a , claimsthatincreasefor eignd i r e c t
investmentcanmakethedevelopingcountriesapplycleanerindustrybyimportingthepollutionstandardof developedcountries.Zhu,etal
(2016)testthehypothesisinthecaseoffive ASEANcountries(Indonesia,
Malaysia,thePhilippines,SingaporeandThailand)bypanelquantileregressionmodel.FDI,tradeopenne ss,
industrialoutputandenergyconsumptionareconsideredinthemodel.IncontrasttoRen,etal
(2014),this
studyobservesa negativerelationshipbetweenF D I a n d environmentalpollution.T r a d e opennessa
l s o
Trang 4reducestheCO2e m i s s i o n , w h e r e a senergyconsumptionincreasesit.Another studyagainstPHHisfromAl-mulaliandTang(2013),whichemploy multivariateframework, andFullyModifiedOLStoanalyzethedata
ofGulfCooperationCouncil countriesfrom1980to2009.Theoutcomeisthatenergyconsumptio n,trade
openness,urbanizationand
GDPgrowthincreaseCO2e m i s s i o nwhereasFDIinwardshaveanegativenexuswithCO2emissioninlong
run.Besides,usingshortrunGrangercausalitytestresults,theyfindthatFDIhasnoshortruncausalrelati onshipwithCO2e m i s s i o n
TamazianandRao(2010)conducttheestimationon24transitionaleconomiesfrom1993to20 04.They
employt h e s t a n d a r d r e d u c e d
-f o r m m o d e l i n g a p p r o a c h a nd G M M e s t i m a t i o n -f o r theird a t a , t h e n gettheresultssupporting-f ortheEKChypothesis.Besides,theyclaimthenegativeeffectoffinancialliberalizationone n v i r o n m e
n t ifinstitutionalframeworkisnotcontrolledstrictly.Anothersupportforthishypothesiscomesf r o
m
PaoandTsai(2011).Thedataisestimatedbypanelcointegrationtechnique.Inlong-runequilibrium,
CO2e m i s s i o n sappeartobeenergyconsumptionelasticandFDIinelastic,andtheresultsseemtosupportthe EKChypothesis.Moreover,thisstudyalsosupportsforPHH
ChandranandTang(2013)studytherelationshipbetweenenergyconsumption,FDIandCO2e m i s s i o n sfor fiveASEAN countriesfrom1971 to2008 Usingthemultivariatecointegrationtestand Grangercausal ity
analysis,theirempiricalresultsindicatethatCO2
emissionsandtheirdeterminantsareco-integratedonlyin
Indonesia,MalaysiaandThailand.FDIisnotsignificant, economicgrowthisanimportantfactoraff ecting
pollution.AndtheyconcludethattheirstudydoesnotsupportforinvertedU-shapeEKChypothesis.Another studyprovidesevidenceagainstEKChypothesisisfromNarayanandNarayan(2010).Theytestt heEKC
hypothesisbypaneldataof43developingcountries.Thirty-fivepercentofsamplesindicatefallingpollution
overthelongrun.Besides,testinginMiddleEasternandSouthAsianshowthenegativenexusamongincome andCO2e m i s s i o n s
3.Anoverviewoftradeopenness(TO)inVietnam
ThewarinVietnamofficiallyendedin1975,andits consequencewasheavy,theeconomywasr uined.Rightafterwa r, because ofpolitical mechanism, Vietnamwasisolatedfromtheworld.P urs ui ng socialisteconomy,Vietnamesego ve rnme nt closedtheeconomy,bannedprivatebusine ssesand builtstatetradingn e t w o r k
Passing1 9 7 0 s , r e a l i z i n g thatthee c o n o m y p o l i c y w a s ineffective,thepoliticiansbega nopeningtheeconomy.“Doimoi”policywaslaunchedwithaimattransitionfromacentralizedeconomytoanop enmarketeconomy.Inthatperiod,privatebusinesswasencouraged,regulationsforforeigninvestorw asloosen,andeconomicr e l a t i o n s w e r e o p e n e d S i n c e then,Vietnamesee c o n o m y g r a d u
a l l y integratedw i t h t h e w o r l d Vietnambecamea m e m b e r ofAssociationofS o u t h e a s t As i a n Nations( ASE AN ) i n 19 95 a nd As i a
-P a c i fi c EconomicCooperation(A-PEC)in1998.AsamemberofASEAN,Vietnamhasparticipate dinther e c e n t l y establishedFTAsbetweenASEANandJapan,ChinaandKorea
In2001,U.S.VietnamBilateralTradingAgreement(USVietnamBTA)wassigned,markedtheendofcoldw a r periodb e t w e e n Vietnama n d U S A T h e U S
-V i e t n a m B T A p l a c e d a n i m p o r t a n t r o l e i n -V i e t n a m e s e economicintegrationby“spurri
ngpoliticalwilltospeedupnegotiationsonVietnam’saccessiontoWTO”inlateryears(CIEM-USAID,2007).In2007,VietnamhasbeenofficiallyafullmemberofWorldTradeOrganization(WTO).As theregulationsofWTO,Vietnamgovernmenthastoopenthemarket,cutsdowni m p o r t tariff,re movestariffb a r r i e r s overtimea s s c h e d u l e committedw i t h W T O AfterjoiningtoW T O , Vietna mesec u s t o m e r s h a v e chancestoc o n s u m e thel a r g e a m o u n t ofi m p o r t goods,a n d enterpris
Trang 523 esc a n introducetheirproducts intotheworldmarket.Besides,FDIinflow wasalsoincreasingsi gnificantly andr e a c h e d anall-timehighestofUS$71.7billionin2008
Trang 6Inourresearch,theyear2007whenVietnamjointoWTOischosenasabreakthrougheventinthisprocess Additionally,wealsoemployedtradevolumeofimportandexportasameasureoftradeopenness
4.ThemodelandEstimation
4.1 Data
Thisstudycoverstheperiodfrom1986to2014andthedataisextractedfromWorldBankdata base.Ad e s c r i p t i v e analysisoftheseriesisconductedinTable1,whichpresentsobservationnumbers, mean,standarddeviation,coefficientofvariationandexponentialgrowthrateinthiswork
Allvariablesarecollectedyearlyfrom1986to2014,thatleadseachvariablehas29observations.C arbondioxideemissionremainedstableatthelowpointsinlate1980sandearly1990sandthenwasincreasin gsince
1996andreachedthepeakin2014.Ingeneral,thegrowthrateofCO2e m i s s i o nis4.02%annuallyandaverage levelis872.1tonspercapita,relativelylowintheregion.Regardingtoincome,Vietnamexperiencedoptimistic
developmentinthisperiod,hastransferredfrompoorestcountriesgrouptolowermiddle-incomenation.Thea v e r a g e annualGDPpercapitaisat$688.1andincreases8.59%peryear.GDPva rieswidelyamongtheyears,thatisindicatedbycoefficientofvariation82.01%
Table1:Descriptiveanalysisinlevelformofvariables
Variable Observation Mean StandardDev Coefficientofvariation(
%)
Growthrat e( % )
Note:TheunitofCO2ismetrictonspercapita.TheunitsofGDPandFDIarecurrentUS$percapita.TheunitofTradeiscurrentbillions US$.TheunitofEUiskgofoil equivalentper capita.
Since“Doimoi”policywaslaunchedin1986withaimatopeningthemarket,Vietnambeganatt ractinginflowFDIwiththestartingpointof$40,00 0 in1986.Theperiodfrom1990to1996,mor eFDIisinvestednotablyintoVietnammarketandcontributesignificantlytoVietnameseeconomicdev elopment.Itisdemonstratedbyhighvalueofcoefficientofvariationat 100.19%aswell asgrowthrateat
24.59%.AlthoughtheslightdeclineasaresultofAsianfinancialcrisis 1997 andcompetitionfr omothercountriesinregionespeciallyChina,Vietnamobservedthe enormous FDIinflow since2007whenVietnamofficiallyjointedtheW T O , reachedthepeakofover$9.5billionFDI.Thankst o“Doimoi”policy,alongwithFDI,opennesspolicyhelpstradevolumeinVietnamriserapidlyamongth eyearswithcoefficient ofvariation119.06%.Over29years,importandexportvolumeachievedannu algrowthrateat16.11%.Fromthesmallesttradevolumein1 9 8 8 at18.95%ofGDP,Vietnamachievedt hetopat169.53%ofGDPin2014inthisperiod.Concerningenergyu s e , Vietnamconsumesaverage406 5kgofoilequivalentpercapitaannuallythroughtheconsideredperiod.Althoughthep o w e r consumptio
ni n c r e a s e s overtimea s generaltrend,thegrowths p e e d experiencedreasonablerateat4.02%
Trang 7� 3 � 4 � 5 � 6 � 7
�
4.2 Modelspecifications
EnvironmentalKuznetsCurve(EKC)wasfirstintroducedbySimonKuznetsinthe1950sand1960s,a ndthenGrossmanandKrueger(1995)testedthistheorybythemodelofrelationshipbetweenpollutionlevela ndincomeandsquareofincome.Themodel(1)isconductedtotestthevalidityofEKCinVietnamcase
����2�=�0+�1������+�2�����2+� (1)
WhereCO2tiscarbondioxideemissions(metrictons)percapita,GDPtrepresentsgrossdomesticproduct
2
percapita(currentUS$)and�
���
2
isthesquareofpercapitagrossdomesticproduct.We usethevariabl e
��
��
withaimattestingthevalidityofEnvironmentalKuznetsCurvehypothesisforallmodels.Tosupport
EKC,�1i sexpectedtobepos it iv e whereas�2shouldbenegative.Atthat time,the relationshipbetwe en
incomea nd pollutionwill bepresenteda s invertedU shapec ur v e W he r e a s , thefollowingmodel a i
m at
examiningthePollutionHavenHypothesisinVietnam
����2�=�0+�1������+�2�����2+�����+ ������+ ��������+ ���+ ��+� (2)TradeliberalizationopensagreatopportunitytoimportandexportbetweencountriesthroughFreeTrade Agreements(FTAs),aswellasasignificant inflowFDIintoVietnam.TheeventjoiningWTOin200 7isabreakthroughoftradeopenness issueinthisco untr y In the equation (2),FDI(currentU S$percapita)is
representedby� � ��,while������i stotalv o l u m e ofi m p o r t a n d export,a n d ���i sd u m m y va riable
representingthetradeopennesswhichis given0fortheyear before2007and1for theyearfrom2007.Tobe
consistentwithPHHhypothesis,wepredictthecoefficientsof���,�����and��arepositive,i n d i c a t i
n g that
CO2e m i s s i o nincreasesasFDIinflow,tradevolumeincreaseandthetradeopennesshasanegativeimpacton Vietnamenvironment
Theliteratureontheenvironmentmatterhasprovedthatenergyconsumptioncausesanegativei
mpactonenvironment.Al-mulaliandTang(2013)consideredenergyconsumptionasadeterminentintheirmodel.T h e processof producingpoweraswellasconsumingenergyreleaseanumberofcarbondioxidetotheair
Wetherefore,considerenergyuse���(kg ofoilequivalent percapita) as anelementcausingtheincreaseof
CO2emission.
Allmodelsareestimatedbyordinaryleastsquare(OLS)regressionwithlogarithmformofCO2,���,���2
,���,��,and�����
4.3 EstimationResults
Table2 p r o v i d e s t h e r e g r e s s i o n r e s u l t s ofm o d e l s testingthev a l i d i t y ofEKChypothesisa n
d P H H i n Vietnamcase from1986to2014.Coefficients,R-squared andadjustR-squared arerepresentedinthetable,t-v a l u e s areinparentheses
Table2indicatesthatEKChypothesisisvalidintheVietnamcasethatillustratedbysignificantpositiv e
andnegativecoefficientsof���and���2respectively.ThisalsoconsistentwithpreviousstudiesofPaoa n d Ts ai( 2 0 1 1 ) , Tamaziana n d R a o (2010),T a n g a n d T a n (2015).Figure1 showst h a t theG D P i n Vietna
mi s
currentlyaroundthepeak(approximately2000$Upercapita)oftheEKCandCO2emissionslikelymovedownwit hanincreaseinGDPpercapita.Further,model(1)showsthattheairqualityofVietnamturnstoworseov ertimebysignificantpositivecoefficientsoftimetrendvariableat1%level
Trang 8Note:Thegraphisdrawnbyusingtheregression results of equation(1).
Addingenergyusevariablemakestheexplanationpowerofmodelstronger,withhighervalueof�2a n d
adjusted-�2.Table2providesthe
evidencethatenergyconsumptioncausestheairpollutioninVietnam.All
coefficientsfrommodel(2)tomodel(6)arepositiveandsignificantat1%level.Theharmfulnessofusi ng
energyisobviousandprovedinpreviousstudies,whenfossilandfuelsenergyiscurrentmainpowerusedinthe world
WithregardtoFDI,thereisnoevidencethatFDIhasimpactonCO2emissioninouroutcomes,representedby insignificantnegativec o e ffi c i e n t s T h i s r e s u l t i s s i m i l a r w i t h t h e w o r k ofT a n g a n d T a n ( 2
0 1 5 ) whichconductedthehypothesisusingdatainVietnamfrom1976to2009.Theirfinding
yieldsanegativeimpactofFDIonC O2e m i s s i o nbuti t i s n o t s i g n i fi c a n t statistically.A n e x p l a n a t i o
n fort h i s fi n d i n g mightbethatV i e t n a m ’ s economyisaclosedeconomybefore“Doimoi”since19 86,FDIislikelynegativefrom1976to1985a n d increasedinconsiderablyuntil1990.Therefore,itishar dtoconcludethattherelationshipbetweenCO2e m i s s i o n andFDIinthisperiod
issignificant.FDIinflows inVietnamjustincreases rapidlysince2006 whenthemarketismoreliberalizationand,inparticular,VietnamjoinedtheWTO
Table2:Regressionre
sult
Variable Model(1) Model(2) Model(3) Model(4) Model(5) Model(6) Constant 2.4220**13.6460***( 2 5 0 )-8.7601*** -7.4654***(-4.21) -12.7174***(-3.20) -14.0621***(-3.73) - (-4.83)
(-4.51)
����� 0.8548** 1.5628*** 1.5387*** 1.3531*** 0.7458** 0.7803**
����� 2 -0.0490* -0.1293*** -0.1273*** -0.1219*** -0.0683** -0.0718**
(-1.80) (-5.29) (-5.24) (-5.32) (-2.55) (-2.59)
(-3.16) (-2.65)
Trang 9Note:1)(*),(**) and(***) indicatesignificanceat the10%,5%and1% level respectively.2)Theregression resultsintheTableareestimatedwith includingtimetrendvariableT(notreported).
Trang 10Iti s evidentf r o m thetable2 thattradeopenness,r e p r e s e n t e d bytotalv o l u m e ofinternationaltr ade,
contributestoCO2releaseinVietnam,whichareobservedfromestimationresultsofmodel(5)andmodel(6)a t 5%significantlevel,giving evidencestosupportPHH.Theincreasing trade
betweenVietnamandforeign
countriesleadsthegrowthofCO2re le as e.Increasedtrademeansexpandedproductionandconsum ption,
whichcontributetotheairpollutionfromthewasteoftheseactivities.Observingthesamefinding,Ren,etal (2014),Solarin,e t a l
(2017)a l s o r e c o g nizet h e s e r e l a t i o n s h i p s i n C h i n a ’ s i n d u s t r i a l s e c t o r s a n d i n Ghanares pectively.However,thisresultisinsharpcontrastwithfindingofZhu,etal
(2016).Theyfindthattradeopennesshasanegativeimpactoncarbonemissions,indicatingtha tahigherlevel oftradeopenness canr e l i e v e carbonemissionsinlow-orhigh-emissionscountries Further,fortestingtheimpactoftradeopennessonenvironmentinVietnam,wealsoexaminethedum
to0beforetheeventVietnambecomeafullmemberofWTOandequals to 1aftertheevent.Table2exhibitsthepositiveimpactonCO2em is si onoftradeopennessat5%significantleve l.Thisproves
thatairqualityofVietnambecomesbetterafterjoiningtheWTO.Theexplanationisthattobecomeaf u l
l memberofWTO,Vietnamhastoconstructthebetterregulationssystemwhichcontributestoenvironmentpro tection.Thevalueofcoefficientsofdummyvariable,however,arelowerthantradevolume,thereforein
o v e r a l l tradeopennesscausesaslightlypollutiononVietnameseenvironment
5.Conclusions
Theimpactofeconomicdevelopmentandenvironmentpollutionattractsinterestofmanyscho lars.TheenvironmentalKuznetscurvehypothesis(EKC)andthepollutionheavenhypothesis(PHH)areco nductedind i ff e r e n t countrieswithvariousmethodologies.However,therearestilldebateso ntheinvertedU-shapeoftheEKCandthePHHis rejectedbysomeempirical evidences OurpaperteststhesehypothesesinVietnamwitha n a d d i t i o n a l c o n s i d e r dummyv a r i a b l e repr esentingtradeopennessi n Vietnam.W e findthatthe
relationshipb e t w e e n G D P a n d CO2
emissionsi n Vietnami s c o n s i s t e n t w i t h theEKChypothesis,a n d internationaltradehaspositive correlationwithCO2emissionswhichalsosupportforthePHH.Therearetwo
interpretationsofthisoutcome.First,weakenvironmentalpolicyisconsideredasasourceofcompar ative
advantageforl o w i n c o m e countriest o attractf o r e i g n investors.S e c o n d , weakm a n a g e
m e n t a b i l i t y ofregulatorsandlimitedmonitoringcostmayfacilitateforhighincomecountriestos hiftpollution-intensive
industriestopoorerc o u n t r i e s H o w e v e r , joiningW T O helpsVietnamr e d u c e theCO2level,b e c a u
s e the
regulationsaremorecompleted.Ontheotherhand,energyuseisprovedtobeadeterminantcausin gair
pollution
References
Al-mulaliandTang(2013)."Investigatingthevalidityofpollutionhavenhypothesisinthegulfcooperationcouncil(GCC)countrie s."Energy Policy60:813-819.
BaekandKoo(2009)."Adynamicapproachto theFDI-environmentnexus:thecaseofChina andIndia."
BirdsallandWheeler(1993)."TradepolicyandindustrialpollutioninLatinAmerica:wherearethepollutionhavens?"The Journal of Environment & Development 2(1):137-149.
ChandranandTang(2013)."Theimpactsoftransportenergyconsumption,foreigndirectinvestmentandincomeonCO2emission sinASEAN-5economies."Renewable and SustainableEnergy Reviews 24:445-453.
GrossmanandKrueger (1995)."Economicgrowthandtheenvironment."The quarterly journal of economics110(2): 353-377.