Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
There is growing concern about the shift of trade in more polluting products to countries with less restrictive environmental standards, popularly known as pollution havens. This paper explores whether institutional quality affects trade composition and fosters a transition towards cleaner products. Applying a gravity model to a sample of 140 countries for the period 2002–2018, our results show a negative link between institutional quality and trade in products classified as dirty. In addition, the results show a non-linear pattern, with the effects being stronger for countries with high levels of institutional quality. We also examine which dimensions of institutional quality play a more prominent role. Finally, we find that part of the effect of institutional quality is channelled through higher environmental stringency.