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Foreign direct investment and the environment: the state-of-the art in research

Author

Listed:
  • Márcia Cristina Silva Paixão

    (Departamento de Economía de la Universidad Federal de Paraíba (UFPB).)

  • Jorge Madeira Nogueira

    (Departamento de Economía de la Universidad de Brasilia (UnB).)

Abstract

This paper presents a review of the literature on the relationship between foreign direct investment (FDI) and environment. A survey of studies of the years 2000 showed there has been a clear movement of research focused on the “context-dependent” nature of the environmental effects of FDI. Such movement has been characterized by a diversity of observed relationships such as the effective environmental performance of subsidiaries against what was planned by the head office, the relationship between the level of influence of FDI on environmental standards and the degree of corruptibility of local governments. Also, the origin of FDI as a determining factor of its environmental quality, as well as the effect of the presence of NGOs.

Suggested Citation

  • Márcia Cristina Silva Paixão & Jorge Madeira Nogueira, 2015. "Foreign direct investment and the environment: the state-of-the art in research," Economía, Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela, vol. 40(39), pages 11-36, January-J.
    • Handle: RePEc:ula:econom:v:40:y:2015:i:39:p:11-36
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    References listed on IDEAS

    as
    1. Matthew A. Cole & Robert J.R. Elliott & Jing Zhang, 2011. "Growth, Foreign Direct Investment, And The Environment: Evidence From Chinese Cities," Journal of Regional Science, Wiley Blackwell, vol. 51(1), pages 121-138, February.
    2. Frankel, Jeffrey A., 2009. "Environmental Effects of International Trade," Scholarly Articles 4481652, Harvard Kennedy School of Government.
    3. Rauscher, Michael, 2005. "International Trade, Foreign Investment, and the Environment," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 3, chapter 27, pages 1403-1456, Elsevier.
    4. de Soysa, Indra & Neumayer, Eric, 2005. "False Prophet, or Genuine Savior? Assessing the Effects of Economic Openness on Sustainable Development, 1980–99," International Organization, Cambridge University Press, vol. 59(3), pages 731-772, July.
    5. Elif Akbostanci & G.Ipek Tunç & Serap Türüt-Asik, 2004. "Pollution Haven Hypothesis and the Role of Dirty Industries in Turkey’s Exports," ERC Working Papers 0403, ERC - Economic Research Center, Middle East Technical University, revised Feb 2004.
    6. Matthew A. Cole & Robert J. R. Elliott, 2005. "FDI and the Capital Intensity of “Dirty” Sectors: A Missing Piece of the Pollution Haven Puzzle," Review of Development Economics, Wiley Blackwell, vol. 9(4), pages 530-548, November.
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    More about this item

    Keywords

    Foreign investments; foreign direct investment; Environmental impact.;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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