Globalization and Dirty Industries

Jean-Marie Grether and Jaime de Melo

in Challenges to Globalization

Published by University of Chicago Press

Published in print April 2004 | ISBN: 9780226036151
Published online February 2013 | e-ISBN: 9780226036557 | DOI:
Globalization and Dirty Industries

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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

Chapter.  9946 words.  Illustrated.

Subjects: International Economics

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