Does environmental regulation impair international competitiveness of pollution-intensive industries to the extent that … they relocate to countries with less stringent regulation, turning those countries into "pollution havens"? We test this … demonstrate that externalities associated with FDI agglomeration can bias estimates away from finding a pollution haven effect if …

In an attempt to verify the pollution haven hypothesis, this study investigates the impact of environmental regulations … the host country's environmental regulations. Since the pollution haven's effects indicate moving the polluting production … those countries. This supports the prevalence of the effects of pollution havens. However, before we separate the FDI into …