IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v169y2023ics0148296323006148.html
   My bibliography  Save this article

A power-dependence perspective of the pollution haven hypothesis

Author

Listed:
  • Deng, Ziliang
  • Huang, Eryue
  • Wang, Pei

Abstract

The pollution haven hypothesis has suggested that developed-country multinational enterprises (DMNEs) offshore their polluting activities to developing countries in an attempt to circumvent the stringent environmental protection regulations in their home markets. What remains unclear is why the host developing-country governments permit the above-average pollution caused by foreign subsidiaries. From a power-dependence perspective, we hypothesize that when the host developing-country governments exhibit dependence on advanced resources from developed countries, DMNE subsidiaries exert power (or influence) over the governments in regulatory discretion within the legal boundary. The unbalanced power relation grants DMNE subsidiaries the leeway to pollute more than their peers. By combining the pollution haven hypothesis with the power-dependence theory, this study highlights the heterogeneity within the local developing countries in environmental arbitrage in international business.

Suggested Citation

  • Deng, Ziliang & Huang, Eryue & Wang, Pei, 2023. "A power-dependence perspective of the pollution haven hypothesis," Journal of Business Research, Elsevier, vol. 169(C).
    • Handle: RePEc:eee:jbrese:v:169:y:2023:i:c:s0148296323006148
    DOI: 10.1016/j.jbusres.2023.114255
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296323006148
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2023.114255?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:169:y:2023:i:c:s0148296323006148. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.