IDEAS home Printed from https://ideas.repec.org/a/ist/iujepr/v8y2021i2p257-275.html
   My bibliography  Save this article

The International Trade Analysis of Turkey’s Polluting Industries

Author

Listed:
  • Cihat Koksal

    (Istanbul Ticaret Universitesi, Isletme Fakultesi Uluslararasi Ticaret Bolumu, Istanbul, Turkiye)

  • Guldenur Cetin

    (Istanbul Ticaret Universitesi, Isletme Fakultesi Iktisat Bolumu, Istanbul, Turkiye)

Abstract

The aim of this study is to test the international trade of Turkey’s polluting sectors using variables such as foreign direct investments and economic growth within the scope of the pollution haven hypothesis and to present policy recommendations for other developing countries. This study analyzes the annual data for the 1985-2017 period by using the multivariate regression model. As a result of the empirical tests, it is seen that Turkey is more attractive in the polluting sectors because environmental regulations are not very strict during the examined periods, and it has become more likely to export in these sectors through foreign direct investments. According to the analysis results, it has been revealed that Turkey can be qualified as a pollution shelter for the relevant period, and various policy recommendations have been developed in this context.

Suggested Citation

  • Cihat Koksal & Guldenur Cetin, 2021. "The International Trade Analysis of Turkey’s Polluting Industries," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 8(2), pages 257-275, July.
    • Handle: RePEc:ist:iujepr:v:8:y:2021:i:2:p:257-275
    DOI: 10.26650/JEPR.930212
    as

    Download full text from publisher

    File URL: https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/88C4740BC21F46CC8B899261CEDD743E
    Download Restriction: no
    File URL: https://iupress.istanbul.edu.tr/en/journal/jepr/article/turkiyede-kirlilik-yaratan-sektorlerin-dis-ticaretinin-analizi
    Download Restriction: no
    File URL: https://libkey.io/10.26650/JEPR.930212?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Huayun Zhai & Danlan Liu & Kam C. Chan, 2019. "The Impact of Environmental Regulation on Firm Export: Evidence from China’s Ecological Protection Red Line Policy?," Sustainability, MDPI, vol. 11(19), pages 1-13, October.
    2. List, John A. & Co, Catherine Y., 2000. "The Effects of Environmental Regulations on Foreign Direct Investment," Journal of Environmental Economics and Management, Elsevier, vol. 40(1), pages 1-20, July.
    3. World Bank, 2015. "World Development Indicators 2015," World Bank Publications - Books, The World Bank Group, number 21634.
    4. Eduardo Polloni-Silva & Diogo Ferraz & Flávia de Castro Camioto & Daisy Aparecida do Nascimento Rebelatto & Herick Fernando Moralles, 2021. "Environmental Kuznets Curve and the Pollution-Halo/Haven Hypotheses: An Investigation in Brazilian Municipalities," Sustainability, MDPI, vol. 13(8), pages 1-19, April.
    5. Robert Hoffmann & Chew-Ging Lee & Bala Ramasamy & Matthew Yeung, 2005. "FDI and pollution: a granger causality test using panel data," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(3), pages 311-317.
    6. Wolfgang Keller & Arik Levinson, 1999. "Environmental Compliance Costs and Foreign Direct Investment Inflows to U.S. States," NBER Working Papers 7369, National Bureau of Economic Research, Inc.
    7. Sapkota, Pratikshya & Bastola, Umesh, 2017. "Foreign direct investment, income, and environmental pollution in developing countries: Panel data analysis of Latin America," Energy Economics, Elsevier, vol. 64(C), pages 206-212.
    8. Pethig, Rudiger, 1976. "Pollution, welfare, and environmental policy in the theory of Comparative Advantage," Journal of Environmental Economics and Management, Elsevier, vol. 2(3), pages 160-169, February.
    9. Ahmet ŞAHİNÖZ & Zahra FOTOUREHCHI, 2014. "Kirlilik Emisyonu ve Doğrudan Yabancı Sermaye Yatırımları: Türkiye İçin “Kirlilik Sığınağı Hipotezi” Testi," Sosyoekonomi Journal, Sosyoekonomi Society, issue 21(21).
    10. Alexandre Repkine & Dongki Min, 2020. "Foreign-Funded Enterprises and Pollution Halo Hypothesis: A Spatial Econometric Analysis of Thirty Chinese Regions," Sustainability, MDPI, vol. 12(12), pages 1-24, June.
    11. Xu, Yan & Dietzenbacher, Erik & Los, Bart, 2020. "International trade and air pollution damages in the United States," Ecological Economics, Elsevier, vol. 171(C).
    12. Kivyiro, Pendo & Arminen, Heli, 2014. "Carbon dioxide emissions, energy consumption, economic growth, and foreign direct investment: Causality analysis for Sub-Saharan Africa," Energy, Elsevier, vol. 74(C), pages 595-606.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Özge Barış-Tüzemen & Samet Tüzemen, 2022. "The Impact of Foreign Direct Investment and Biomass Energy Consumption on Pollution in BRICS Countries: A Panel Data Analysis," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 14(1), pages 76-92, January.
    2. Shahbaz, Muhammad & Nasreen, Samia & Abbas, Faisal & Anis, Omri, 2015. "Does foreign direct investment impede environmental quality in high-, middle-, and low-income countries?," Energy Economics, Elsevier, vol. 51(C), pages 275-287.
    3. Wen Jun & Muhammad Zakaria & Syed Jawad Hussain Shahzad & Hamid Mahmood, 2018. "Effect of FDI on Pollution in China: New Insights Based on Wavelet Approach," Sustainability, MDPI, vol. 10(11), pages 1-20, October.
    4. Tarek Bel Hadj & Adel Ghodbane, 2022. "A Moderated Mediation Model of the Effect of Foreign Direct Investments on CO2 Emissions: Panel Data Evidence from GCC Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(2), pages 904-925, June.
    5. Muhammad Shahbaz & Mehmet Akif Destek & Michael L. Polemis, 2018. "Do Foreign Capital and Financial Development Affect Clean Energy Consumption and Carbon Emissions? Evidence from BRICS and Next-11 Countries," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 68(4), pages 20-50, October-D.
    6. Destek, Mehmet Akif & Sinha, Avik & Özsoy, Ferda Nakıpoglu & Zafar, Muhammad Wasif, 2023. "Capital Flow and Environmental Quality at Crossroads: Designing a Sustainable Policy Framework for the Newly Industrialized Countries," MPRA Paper 117560, University Library of Munich, Germany.
    7. Opoku, Eric Evans Osei & Boachie, Micheal Kofi, 2020. "The environmental impact of industrialization and foreign direct investment," Energy Policy, Elsevier, vol. 137(C).
    8. Solarin, Sakiru Adebola & Al-Mulali, Usama & Musah, Ibrahim & Ozturk, Ilhan, 2017. "Investigating the pollution haven hypothesis in Ghana: An empirical investigation," Energy, Elsevier, vol. 124(C), pages 706-719.
    9. Sturm, Daniel & Ulph, Alistair, 2002. "Environment, trade, political economy and imperfect information: a survey," Discussion Paper Series In Economics And Econometrics 0204, Economics Division, School of Social Sciences, University of Southampton.
    10. Wilman-Santiago Ochoa-Moreno & Byron Alejandro Quito & Carlos Andrés Moreno-Hurtado, 2021. "Foreign Direct Investment and Environmental Quality: Revisiting the EKC in Latin American Countries," Sustainability, MDPI, vol. 13(22), pages 1-18, November.
    11. Manal Ayyad Dhif Alshammry & Saqib Muneer, 2023. "The influence of economic development, capital formation, and internet use on environmental degradation in Saudi Arabia," Future Business Journal, Springer, vol. 9(1), pages 1-16, December.
    12. Chen, Hong & Gangopadhyay, Partha & Singh, Baljeet & Chen, Kairan, 2023. "What motivates Chinese multinational firms to invest in Asia? Poor institutions versus rich infrastructures of a host country," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    13. Zeng, Dao-Zhi & Zhao, Laixun, 2009. "Pollution havens and industrial agglomeration," Journal of Environmental Economics and Management, Elsevier, vol. 58(2), pages 141-153, September.
    14. Yuan Zhao & Tian Zhang & Ting Wu & Shujing Xu & Shuwang Yang, 2021. "Effects of Technological Progress from Different Sources on Haze Pollution in China," Sustainability, MDPI, vol. 13(5), pages 1-18, March.
    15. Ilker Akar, 2019. "The Pollution Haven Hypothesis and Foreign Trade - A Survey on the Relation with Environment," Economics Literature, WERI-World Economic Research Institute, vol. 1(1), pages 37-50, June.
    16. Bataka, Hodabalo, 2021. "Globalization and Environmental Pollution in Sub-Saharan Africa," African Journal of Economic Review, African Journal of Economic Review, vol. 9(1), January.
    17. Singhania, Monica & Saini, Neha, 2021. "Demystifying pollution haven hypothesis: Role of FDI," Journal of Business Research, Elsevier, vol. 123(C), pages 516-528.
    18. Mahalik, Mantu Kumar & Mallick, Hrushikesh & Padhan, Hemachandra, 2021. "Do educational levels influence the environmental quality? The role of renewable and non-renewable energy demand in selected BRICS countries with a new policy perspective," Renewable Energy, Elsevier, vol. 164(C), pages 419-432.
    19. José-Antonio Monteiro & Madina Kukenova, 2008. "Does Lax Environmental Regulation Attract FDI When Accounting For "Third-Country" Effects?," IRENE Working Papers 08-01, IRENE Institute of Economic Research.
    20. Demena, Binyam Afewerk & Afesorgbor, Sylvanus Kwaku, 2020. "The effect of FDI on environmental emissions: Evidence from a meta-analysis," Energy Policy, Elsevier, vol. 138(C).

    More about this item

    Keywords

    Pollution haven hypothesis; Pollution halo hypothesis; International trade; Foreign direct investments; Ecological footprint JEL Classification : E00 ; F10 ; F40;
    All these keywords.

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • F10 - International Economics - - Trade - - - General
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ist:iujepr:v:8:y:2021:i:2:p:257-275. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ertugrul YASAR (email available below). General contact details of provider: https://edirc.repec.org/data/ifisttr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.