Pollution export as state and corporate strategy: Japan in the 1970s

Abstract

Most economists examining the question of 'pollution havens' have concluded that the level of environmental regulation and activism in different states is not generally a significant determinant of international patterns of trade and foreign direct investment. This paper argues on the basis of extensive primary research that with respect to Japan's foreign direct investment during the 1970s, at any rate, this conclusion needs to be rethought. In the early 1970s, Japanese actors were remarkably forthright in ascribing their investment decisions to a desire to move polluting industry overseas. These statements allow us to examine 'pollution export' as a state strategy, a project advocated by industry organizations, and a response of individual firms to high levels of protest and regulation. The paper also traces the development of the Japanese debate over pollution export through the 1970s. © 2009 Taylor & Francis.