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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. Bagayev, Igor & Najman, Boris, 2014. "Money to fill the gap? Local financial development and energy intensity in Europe and Central Asia," MPRA Paper 55193, University Library of Munich, Germany.
  2. Cole, Matthew A. & Elliott, Robert J.R. & Okubo, Toshihiro & Zhou, Ying, 2013. "The carbon dioxide emissions of firms: A spatial analysis," Journal of Environmental Economics and Management, Elsevier, vol. 65(2), pages 290-309.
  3. 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.
  4. 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.
  5. 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.
  6. Svetlana Batrakova & Ronald Davies, 2012. "Is there an environmental benefit to being an exporter? Evidence from firm-level data," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 148(3), pages 449-474, September.
  7. 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.
  8. 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.
  9. Lan, Jing & Munro, Alistair, 2013. "Environmental compliance and human capital: Evidence from Chinese industrial firms," Resource and Energy Economics, Elsevier, vol. 35(4), pages 534-557.
  10. 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.

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