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Challenges to GlobalizationAnalyzing the Economics$
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Robert E. Baldwin and L. Winters

Print publication date: 2004

Print ISBN-13: 9780226036151

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226036557.001.0001

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Globalization and Dirty Industries

Globalization and Dirty Industries

Do Pollution Havens Matter?

(p.167) 5 Globalization and Dirty Industries
Challenges to Globalization

Jean-Marie Grether

Jaime de Melo

University of Chicago Press

This chapter addresses the relation between globalization and the environment by reexamining evidence of a North–South delocalization of heavily polluting industries. Section 5.2 reviews the evidence on pollution havens, arguing that it is either too detailed (firm-specific or emission-specific evidence) or too fragmentary (case studies) to give a broad appreciation of the extent of delocalization over the past twenty years. Section 5.3 reports on the worldwide evolution of heavy polluters (the so-called dirty industries) and on the evolution of North–South revealed comparative advantage indexes. Section 5.4 estimates a gravity trade model to examine bilateral patterns of trade in polluting products. The estimates reveal that transport costs may have acted as a brake on North–South relocation, and fail to detect a regulatory-gap effect. A commentary is also included at the end of the chapter.

Keywords:   globalization, environment, polluting industries, delocalization, transport costs

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