Foreign direct investment and environmental regulation of the manufacturing and mining branches in Mexico

Abstract

This research aims to verify whether or not Mexico is a polluting paradise,
using a fixed effects panel data model with instrumental and interactive
variables. It was shown that the Pollution Haven Hypothesis is true for
Mexico, categorizing it as a pollution paradise in relation to the mining and
manufacturing branches. It about is not about sacrificing or putting a stop to
the channeling of Foreign direct investment in the country towards these industries,
but on the contrary, attracting these new investments, considering
that environmental regulations should not be liable that encourage them.