ABSTRACT
With the ongoing process of globalization, the problems associated with “pollution havens” came to light in the early 1970s. The discussions still continue today on how the world should deal with pollution intensive companies in developed countries-such as those in iron and steel industries, chemical industries, and paper and pulp industries-relocating to developing countries where they can enjoy weaker environmental regulations and lower environmental taxes. As a matter of fact, CO2 emission by the lower middle-income countries has been on the rising trend during the last 30 years with their average per capita GNI more than doubled during the same period. The FDIs percentage to GNI in the lower
middle-income countries has increased dramatically from 1.9 percent in 2003 to 3.9 percent in 2008. GNI per capita during the period of 2003 to 2012 pointed out a similar pattern with FDIs percentage to GNI. The growth of GNI per capita during that period increased by an average 6 percent per year.
