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The Effects of Environmental Regulations on Foreign Direct Investment

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  • List, John A.
  • Co, Catherine Y.

Abstract

This paper employs a conditional logit model to estimate the effects of state environmental regulations on foreign multinational corporations' new plant location decisions from 1986 to 1993. The relationship between site choice and state environmental regulations is explored, using four measures of regulatory stringency. We find evidence that heterogeneous environmental policies across states do matter.
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  • List, John A. & Co, Catherine Y., 2000. "The Effects of Environmental Regulations on Foreign Direct Investment," Journal of Environmental Economics and Management, Elsevier, vol. 40(1), pages 1-20, July.
  • Handle: RePEc:eee:jeeman:v:40:y:2000:i:1:p:1-20
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    1. Bartik, Timothy J, 1985. "Business Location Decisions in the United States: Estimates of the Effects of Unionization, Taxes, and Other Characteristics of States," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(1), pages 14-22, January.
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    5. Carlton, Dennis W, 1983. "The Location and Employment Choices of New Firms: An Econometric Model with Discrete and Continuous Endogenous Variables," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 440-449, August.
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    7. Coughlin, Cletus C & Terza, Joseph V & Arromdee, Vachira, 1991. "State Characteristics and the Location of Foreign Direct Investment within the United States," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 675-683, November.
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