Trade openness and environmental quality: A literature review
PhD student. PHAM THI THUY DIEM (Banking University Ho Chi Minh City, University of Economics Ho Chi Minh City; Asian Journal of Economic s and Banking) and Professor. Dr. NGUYEN TRONG HOAI (Vice President of University of Economics Ho Chi Minh City)
ABSTRACT:
The environmental effect of trade liberalization has been one of the most crucial questions concerning trade policy over the last two decades. However, the theoretical literature on trade openness and the environment is largely inconclusive relating to the overall influence of international trade on the environmental quality including displacement hypothesis, pollution haven hypothesis, foreign direct investment, “race to bottom”, diffusion of technology, and globalization. Previous studies demonstrate that trade openness have both positive and negative influence on the environmental quality.