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The Environmental Performance of Firms: The Role of Foreign Ownership, Training, and Experience

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  • Matthew A Cole
  • Robert R J Elliott
  • Eric Strobl

Abstract

In this paper we extend the debate on the environmental implications of foreign direct investment in developing countries by examining a new mechanism through which foreign influence can affect the environmental performance of firms. We focus on the extent to which key workers who have had previous training or experience in a foreign owned firm transfer and utilise their knowledge gained to the benefit of the local environment. To this end we use detailed firm-level data on manufacturing firms in Ghana. Our econometric results sugggest that the foreign training of a firm's decision maker does reduce fuel use, particularly so in foreign owned firms. Foreign ownership per se does not influence fuel use or total energy use but is found to increase electricity use, perhaps the cleanest form of energy used by Ghanaian firms.

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Bibliographic Info

Paper provided by Department of Economics, University of Birmingham in its series Discussion Papers with number 07-08.

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Length: 28 pages
Date of creation: Aug 2007
Date of revision:
Handle: RePEc:bir:birmec:07-08

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Postal: Edgbaston, Birmingham, B15 2TT
Web page: http://www.economics.bham.ac.uk
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Keywords: Environment; Spillovers; FOreign Direct Investment;

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References

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Citations

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Cited by:
  1. Facundo Albornoz & Matthew A Cole & Robert J R Elliott & Marco G Ercolani, 2008. "In Search of Environmental Spillovers," Discussion Papers 08-03, Department of Economics, University of Birmingham.
  2. Longoni, Annachiara & Golini, Ruggero & Cagliano, Raffaella, 2014. "The role of New Forms of Work Organization in developing sustainability strategies in operations," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 147-160.
  3. Matthew A. Cole & Robert J R Elliott & Toshihiro Okubo & Ying Zhou, 2012. "The Carbon Dioxide Emissions of Firms: A Spatial Analysis," Keio/Kyoto Joint Global COE Discussion Paper Series 2012-003, Keio/Kyoto Joint Global COE Program.
  4. Massimiliano Mazzanti & Davide Antonioli & Susanna Mancinelli, 2011. "Are Environmental Innovations Embedded within High-Performance Organizational Changes?," Working Papers 201115, University of Ferrara, Department of Economics.
  5. Jing Lan & Alistair Munro, 2012. "Environmental Compliance and Human Capital: Evidence from Chinese Industrial Firms," GRIPS Discussion Papers 12-05, National Graduate Institute for Policy Studies.
  6. Svetlana Batrakova & Ronald B Davies, 2010. "Is there an environmental benefit to being an exporter? Evidence from firm level data," Working Papers 201007, School Of Economics, University College Dublin.
  7. Richard Perkins & Eric Neumayer, 2009. "How do domestic attributes affect international spillovers of CO2-efficiency?," Grantham Research Institute on Climate Change and the Environment Working Papers 8, Grantham Research Institute on Climate Change and the Environment.
  8. Teixeira, Adriano Alves & Jabbour, Charbel José Chiappetta & Jabbour, Ana Beatriz Lopes de Sousa, 2012. "Relationship between green management and environmental training in companies located in Brazil: A theoretical framework and case studies," International Journal of Production Economics, Elsevier, vol. 140(1), pages 318-329.
  9. Elliott, Robert J.R. & Sun, Puyang & Chen, Siyang, 2013. "Energy intensity and foreign direct investment: A Chinese city-level study," Energy Economics, Elsevier, vol. 40(C), pages 484-494.

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