We investigate whether firms with relatively low environmental standards are more often located in countries that are poor, corrupt or have weak environmental regulations. We find new empirical evidence in favor of the Pollution Haven Hypothesis, which states that MNEs are transferring their...

We analyze the behavior of multinational enterprises in the context of resource rich and poor countries and regarding high and low income countries. We depart from the pollution haven hypothesis and the resource curse. The pollution haven hypothesis states that multinational enterprises move...