Abstract
In this chapter, we will try to summarize the findings of the empirical literature on the impact of environmental regulations on the international competitiveness of the firms. By using the alternative indicators of competitiveness summarized by Jaffe et al. (1995), mentioned in earlier chapters, we will decompose our analysis into following main sections: Relocation of firms in countries with relatively less stringent environmental regulations, also known as pollution haven hypothesis, the impact of environmental regulations on net exports, and the direction of foreign direct investment as related to the stringency of environmental regulations. We will also mention empirical evidences from firm-level studies and case studies from developing countries.
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