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Title: |
Do Dirty Industries Conduct Offshore Assembly
in Developing Countries? |
| Author: |
Clark, Don P.;
Marchese, Serafino; Zarrilli, Simonetta |
| Author
Affiliation: |
U TN; WTO; UN
Conference on Trade & Development |
| Source: |
International Economic Journal, Autumn 2000, v. 14, no. 3, pp. 75-86 |
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Publication Date: |
Autumn 2000 |
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Abstract: |
This paper investigates whether the cost
of environmental regulation influences the international location of
polluting industries. Industries that operate production facilities in
developing countries are identified through their use of the offshore
assembly provisions in the U.S. tariff code. Pollution intensity of
industry output is found to significantly reduce the probability of
conducting offshore assembly in developing countries. This finding
contradicts the argument that developing countries are becoming
pollution havens as a result of offshore assembly independent of their
general disregard for the environment. Integrating production across
national boundaries might actually enhance worldwide environmental
quality. Relatively clean stages of the production process are being
transferred to developing countries with lax environmental regulations,
while polluting segments remain in the U.S. where strict environmental
controls are enforced. |
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