In this study, we examine the relationship between foreign direct investment (FDI)
and environmental pollution within the context of the pollution haven hypothesis (PHH) in
Ghana. We also investigate the role of regulatory quality in the FDI-pollution linkage. The
study employs quarterly data spanning the period 2000Q1-2017Q4 and applies the fully
modified least squares (FMOLS) technique. The empirical results show that FDI inflows
significantly and positively drive environmental pollution. This result holds in the presence of
regulatory quality. Accordingly, we confirm the validity of the pollution haven hypothesis in
Ghana. The study also finds that industrialization increases pollution given its significant
positive relationship with ecological footprint. We discuss relevant policy implications