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Pollution control and multinational firms

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  • Jiancai Pi
  • Xinyi Liu

Abstract

This paper analyzes how pollution control in the recipient developing country affects the flow of multinational capital owned by multinational firms in the source developed country. We find that when pollution control in a developing country becomes stricter, then the amount of multinational capital flowing into the developing country will certainly or conditionally decrease. Through further welfare analysis, we hope to provide some policy suggestions that will allow the government to guarantee the welfare of the labor force while it implements stricter pollution control.

Suggested Citation

  • Jiancai Pi & Xinyi Liu, 2024. "Pollution control and multinational firms," International Journal of Economic Theory, The International Society for Economic Theory, vol. 20(1), pages 3-27, March.
    • Handle: RePEc:bla:ijethy:v:20:y:2024:i:1:p:3-27
    DOI: 10.1111/ijet.12388
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