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In this study, the relationship between foreign direct investment in Turkey and CO 2 emissions for the validity of "Pollution Haven Hypothesis" between 1974 and 2011 is examined. Moreover, by examining the impact of increase in the scale of economy and structural changes on CO 2 emissions, "the Factor Endowment Hypothesis" will be tested to verify its validity in this context. Based on the empirical results, increment in the scale of economy and structural changes cause increase in CO 2 emission, thus Factor Endowment Hypothesis is verified to be valid. However, it can be seen that structural changes have more effects on CO 2 emission compared to that of the increase in the scale of economy. Moreover, the decrease in CO 2 emission caused by foreign direct investments gives strong support to the view of the critics of Pollution Haven Hypothesis. The findings that there is a positive relationship between existence of time trend, which is found to be statistically significant, and CO 2 emission point out that sophisticated technologies have not been used in manufacturing industries and that the society have not been well informed on environmental issues over time.

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