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Geographic variations in the early diffusion of corporate voluntary standards: comparing ISO 14001 and the Global Compact

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  • Richard Perkins
  • Eric Neumayer

Abstract

Despite their availability to firms across the world, uptake of global voluntary standards has proceeded unevenly across countries over time. In this paper we seek to provide new insights into how geography shapes these spatiotemporal variations, focusing on two leading examples of codified voluntarism: ISO 14001 and the Global Compact (GC). In an advance on previous quantitative studies, which have analyzed domestic and nondomestic influences separately, we examine how the internal attributes of place ‘condition’ the influence of transnational spatial dependencies. We find that higher levels of ISO 14001 certification in other economies are more likely to spill over (via transnational linkages) into higher domestic uptake of the standard in wealthier economies, while domestic receptivity to the influence of higher GC adoptions abroad is greater in more democratic countries. Another important advance on previous studies is that we examine the influence of a larger number of measures of transnational economic linkage. Providing evidence of ‘trading-up’ and ‘investing-up’ dynamics, we show that higher densities of ISO 14001 certificates and GC participants in a country’s export and inward foreign direct investment partners are associated with higher levels of domestic uptake of the respective standard. We also find tentative evidence of ‘visiting-up’ dynamics associated with the cross-border movement of businesspeople.

Suggested Citation

  • Richard Perkins & Eric Neumayer, 2010. "Geographic variations in the early diffusion of corporate voluntary standards: comparing ISO 14001 and the Global Compact," Environment and Planning A, Pion Ltd, London, vol. 42(2), pages 347-365, February.
  • Handle: RePEc:pio:envira:v:42:y:2010:i:2:p:347-365
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    Cited by:

    1. Perkins, Richard & Neumayer, Eric, 2012. "Does the ‘California effect’ operate across borders? trading- and investing-up in automobile emission standards," LSE Research Online Documents on Economics 42097, London School of Economics and Political Science, LSE Library.
    2. Seo-Young Cho & Axel Dreher & Eric Neumayer, 2014. "Determinants of Anti-Trafficking Policies: Evidence from a New Index," Scandinavian Journal of Economics, Wiley Blackwell, vol. 116(2), pages 429-454, April.
    3. repec:got:cegedp:119 is not listed on IDEAS
    4. Cho, Seo-Young & Dreher, Axel & Neumayer, Eric, 2010. "The spread of anti-trafficking policies: Evidence from a new index," Center for European, Governance and Economic Development Research Discussion Papers 119, University of Goettingen, Department of Economics.
    5. Merima Ali & Adnan Seric, 2014. "Diffusion of labor standards from origin to host countries: Cross county evidence from multinational companies in Africa," RSCAS Working Papers 2014/22, European University Institute.
    6. Seo-Young Cho & Axel Dreher & Eric Neumayer, 2012. "The Determinants of Anti-trafficking Policies: Evidence from a New Index," Economics of Security Working Paper Series 72, DIW Berlin, German Institute for Economic Research.
    7. Eric Neumayer & Thomas Plümper, 2010. "Making spatial analysis operational: Commands for generating spatial-effect variables in monadic and dyadic data," Stata Journal, StataCorp LP, vol. 10(4), pages 585-605, December.

    More about this item

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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