환경규제 강화로 인한 산업재배치 효과에 관한 연구 -오염다배출산업을 중심으로-

Study on the Pollution-heaven Hypothesis Focusing on Pollution-Intensive Industries

The purpose of this study is to test pollution-heaven hypothesis on the korean pollution-intensive industries, that is, textile and clothing, petrochemical and primary metal industry. The empirical study examines that foreign direct investment(FDI) of korean pollution-intensive industries regresses on couple of exogenous variables and the environmental regulation on FDI. As the environmental regulation is not directly observed, it uses $CO_2$ emissions as the pollutant. The results of the study show that the environmental regulation in a host country is an insignificant determinant of FDI for the korean polluting industries. That is, they do not support Leonard (1988), Xing and Kolstad (2000) that the hypothesis is a significant for heavily polluting industries.