Testing the pollution haven hypothesis from Turkey's perspective

In the development literature, the industrial sector has a very important place in the development of a country. For this reason, developed countries are also called industrialized countries. However, industrialization also causes environmental pollution. Some developed countries, which do not want to remain indifferent to the negative consequences of this situation, are implementing strict environmental policies. As a result of these policies, they shift some of their investments to developing or underdeveloped countries with low environmental costs. In these countries that do not have sufficient capital accumulation and want to grow rapidly, environmental policies are generally not very strict. The view that foreign investments cause environmental pollution in the countries they visit is explained by the Pollution Haven Hypothesis (PHH). In this study, the general situation of foreign direct investments and the sectors they come from in Türkiye's industrialization and development process are examined. Additionally, using data for the period 1970-2021, the impact of foreign direct investment (FDI) on carbon emissions (CO2), taken as a measure of environmental pollution, was examined with the ARDL Boundary Test Approach, PHH. Tested for Türkiye. Production added value (IMLKN), ore and metal exports (ORMEX) and oil consumption (OILCONT) were taken as control variables. As a result of the analysis, a long-term cointegration relationship was found between the variables and it was seen that foreign direct investments affected carbon emissions positively and significantly. For this reason, the Pollution Haven Hypothesis has been accepted for Türkiye. In order for Turkiye to achieve rapid growth, it is important for sustainability that it does not ignore the negative environmental impacts of foreign direct investments.