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Corporate Social Responsibility and the Pollution Haven Hypothesis: Evidence from Multinationals’ Investment Decision in China☆Reprinted fromBu, Liu, Wagner, and Yu (2013). Corporate social responsibility and the pollution haven hypothesis: evidence from multinationals' investment decision in China.Asia-Pacific Journal of Accounting & Economics,20(1), 85–99. Reprinted by permission of Taylor & Francis Ltd,www.tandfonline.comon behalf of The City University of Hong Kong and National Taiwan University

In: Globalization and the Environment of China

Author

Listed:
  • Maoliang Bu
  • Zhibiao Liu
  • Marcus Wagner
  • Xiaohua Yu

Abstract

This paper tests the pollution haven hypothesis by examining the relationship between environmental regulation and foreign investment with consideration of the role of corporate social responsibility, which has so far been neglected. Using multinationals’ investment data from China, our results in general support the pollution haven hypothesis that less stringent environmental regulation is more attractive for multinationals to invest in China, but high social responsibility can counteract attractiveness of weak environmental regulation.

Suggested Citation

  • Maoliang Bu & Zhibiao Liu & Marcus Wagner & Xiaohua Yu, 2014. "Corporate Social Responsibility and the Pollution Haven Hypothesis: Evidence from Multinationals’ Investment Decision in China☆Reprinted fromBu, Liu, Wagner, and Yu (2013). Corporate social responsibi," Frontiers of Economics and Globalization, in: Globalization and the Environment of China, volume 14, pages 109-127, Emerald Group Publishing Limited.
  • Handle: RePEc:eme:fegzzz:s1574-871520140000014017
    DOI: 10.1108/S1574-871520140000014017
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    More about this item

    Keywords

    Pollution haven hypothesis; corporate social responsibility; foreign direct investment; environmental regulation; China; F18; Q56; O53;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • 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
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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