Do Developing Countries Invest Up? The Environmental Effects of Foreign Direct Investment from Less-Developed Countries
AbstractThis paper examines the environmental effects of foreign direct investment (FDI) from less-developed countries (LDC). We hypothesize that rather than transferring poor home-country practices across borders, LDC FDI can increase the level of environmental stewardship of host-country firms. We contend that LDC firms find it increasing financially advantageous to signal to consumers, investors, and potential business partners their commitment to environmental protection by adopting sound environmental practices. Furthermore, this behavior can create spillover effects to other host-country firms, leading these firms to also boost their environmental credentials. Our empirical findings lend support to these conjectures.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal World Development.
Volume (Year): 40 (2012)
Issue (Month): 11 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/worlddev
FDI; environment; ISO 14001; LDC;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Silvio Contessi & Hoda S. El-Ghazaly, 2010. "Multinationals from emerging economies: growing but little understood," The Regional Economist, Federal Reserve Bank of St. Louis, issue Jul, pages 16-17.
- Blomström, Magnus & Kokko, Ari, 1996.
"Multinational Corporations and Spillovers,"
Working Paper Series in Economics and Finance
99, Stockholm School of Economics.
- Matthew Potoski & Aseem Prakash, 2005. "Covenants with weak swords: ISO 14001 and facilities' environmental performance," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 24(4), pages 745-769.
- Gunnar A. Eskeland & Ann E. Harrison, 2002.
"Moving to Greener Pastures? Multinationals and the Pollution Haven Hypothesis,"
NBER Working Papers
8888, National Bureau of Economic Research, Inc.
- Eskeland, Gunnar S. & Harrison, Ann E., 2003. "Moving to greener pastures? Multinationals and the pollution haven hypothesis," Journal of Development Economics, Elsevier, vol. 70(1), pages 1-23, February.
- Eskeland, Gunnar S. & Harrison, Ann E., 1997. "Moving to greener pastures : multinationals and the pollution-haven hypothesis," Policy Research Working Paper Series 1744, The World Bank.
- Brian R. Copeland & M. Scott Taylor, 2003.
"Trade, Growth and the Environment,"
NBER Working Papers
9823, National Bureau of Economic Research, Inc.
- Dasgupta, Susmita & Hua Wang & Wheeler, David, 1997. "Surviving success : policy reform and the future of industrial pollution in China," Policy Research Working Paper Series 1856, The World Bank.
- Petra Christmann & Glen Taylor, 2001. "Globalization and the Environment: Determinants of Firm Self-Regulation in China," Journal of International Business Studies, Palgrave Macmillan, vol. 32(3), pages 439-458, September.
- Branstetter, Lee, 2006. "Is foreign direct investment a channel of knowledge spillovers? Evidence from Japan's FDI in the United States," Journal of International Economics, Elsevier, vol. 68(2), pages 325-344, March.
- Grossman, Gene M & Krueger, Alan B, 1995.
"Economic Growth and the Environment,"
The Quarterly Journal of Economics,
MIT Press, vol. 110(2), pages 353-77, May.
- Anton, W.R.Q.Wilma Rose Q. & Deltas, George & Khanna, Madhu, 2004.
"Incentives for environmental self-regulation and implications for environmental performance,"
Journal of Environmental Economics and Management,
Elsevier, vol. 48(1), pages 632-654, July.
- Anton, Wilma Rose Q. & Deltas, George & Khanna, Madhu, 2002. "Incentives for Environmental Self-Regulation and Implications for Environmental Performance," Working Papers 02-0120, University of Illinois at Urbana-Champaign, College of Business.
- Pauly, Louis W. & Reich, Simon, 1997. "National structures and multinational corporate behavior: enduring differences in the age of globalization," International Organization, Cambridge University Press, vol. 51(01), pages 1-30, December.
- Dani Rodrik, 1997. "Has Globalization Gone Too Far?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 57.
- Alan M Rugman & Alain Verbeke, 1998. "Corporate Strategy and International Environmental Policy," Journal of International Business Studies, Palgrave Macmillan, vol. 29(4), pages 819-833, December.
- Xun Cao & Aseem Prakash, 2011. "Growing exports by signaling product quality: Trade competition and the cross‐national diffusion of ISO 9000 quality standards," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 30(1), pages 111-135, December.
- Chandran, V.G.R. & Tang, Chor Foon, 2013. "The impacts of transport energy consumption, foreign direct investment and income on CO2 emissions in ASEAN-5 economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 24(C), pages 445-453.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.