Abstract
The pollution haven hypothesis (PHH) states that economies with weak (strong) environmental standards have comparative advantages in the production of polluting (nonpolluting) products. Most studies on the PHH implicitly assume that developed countries have strong environmental standards. However, concerns about the environment are rising in developing countries as well. Many developing economies are characterized by wage differentials between the urban and rural sectors, and the attendant urban unemployment. Thus, this study examines whether the PHH is valid in a developing economy while focusing on the characteristic features of the labor market.
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Notes
- 1.
For the Harris–Todaro model and its extension to various aspects of economic problems, see, for example, Bhagwati and Srinivasan (1974), Corden and Findlay (1975), Batra and Naqvi (1987), Beladi and Naqvi (1988), Hazari and Sgro (1991), Gupta (1993), Yabuuchi (1993), Chao and Yu (1996), Chaudhuri (2005), Marjit and Kar (2005), and Beladi et al. (2008).
- 2.
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Yabuuchi, S. (2022). The Pollution Haven Hypothesis in a Dual Economy. In: Le Van, C., Pham Hoang, V., Tawada, M. (eds) International Trade, Economic Development, and the Vietnamese Economy. New Frontiers in Regional Science: Asian Perspectives, vol 61. Springer, Singapore. https://doi.org/10.1007/978-981-19-0515-5_6
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