In this paper, we have studied the influence of laser polarization on the dynamics of the ionization-injected electron beams, and subsequently, the properties of the emitted betatron radiation in laser wakefield accelerators (LWFAs). While ionizing by strong field laser radiation, the generated photo-electrons carry a residual transverse momentum in excess of the ionization potential via the above threshold ionization (ATI) process. This ATI momentum explicitly depends on the polarization state of the ionizing laser and eventually governs the dynamics of the electron beam trapped inside the wake potential. In order to systematically investigate the effect of the laser polarization, here, we have employed complete three-dimensional particle-in-cell simulations in the nonlinear bubble regime of the LWFAs. We focus, in particular, on the effects the laser polarization has on the ionization injection mechanism, and how these features affect the final beam properties, such as beam charge, energy, energy spread, and transverse emittance. We have also found that as the laser polarization gradually changes from linear to circular, the helicity of the electron trajectory, and hence the angular momentum carried by the beam, increases significantly. Studies have been further extended to reveal the effect of laser polarization on the radiation emitted by the accelerated electrons. The far-field radiation spectra have been calculated for the linear and circular polarization states of the laser. It has been shown that the spatial distributions and the polarization properties (Stokes parameters) of the emitted radiation in the above two cases are substantially different. Therefore, our study provides a facile and efficient alternative to regulate the properties of the accelerated electron beams and x-ray radiation in LWFAs, utilizing ionization injection mechanism.