Transnational linkages and the spillover of environment-efficiency into developing countries

Abstract

Arguments about the “positive” influence of growing transnational linkages have typically focused on their role in diffusing environmentally superior innovations which help to raise countries’ environment-efficiency. The present article empirically tests these claims by examining whether developing countries’ linkages with more CO2- and SO2-efficient economies contribute to domestic improvements in CO2- and SO2-efficiency. Our large-N, statistical findings caution against some of the efficiency-oriented optimism voiced by supporters of globalization. Although imports ties with more pollution-efficient countries are found to spillover into improved domestic CO2- and SO2-efficiency, neither transnational linkages via exports, inward foreign direct investment (FDI) nor telephone calls appear to have any influence on domestic pollution-efficiency