Empirical Tests of the Pollution Haven Hypothesis When Environmental Regulation is Endogenous
针对污染避难所假说实证研究的两大缺陷（忽略内生性和地理溢出），利用两种新识别策略，基于美国州级数据发现环境规制对流入的外国直接投资有负面影响，且内生性在统计和经济上均显著。
The pollution haven hypothesis (PHH) posits that production within polluting industries will shift to locations with lax environmental regulation. While straightforward, the existing empirical literature is inconclusive owing to two shortcomings. First, unobserved heterogeneity and measurement error are typically ignored due to the lack of a credible, traditional instrumental variable for regulation. Second, geographic spillovers have not been adequately incorporated into tests of the PHH. We overcome these issues utilizing two novel identification strategies within a model incorporating spillovers. Using US state-level data, own environmental regulation negatively impacts inbound foreign direct investment. Moreover, endogeneity is both statistically and economically relevant.