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The Environmental Performance of Firms: The Role of Foreign Ownership, Training, and Experience

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  • Matthew A Cole
  • Robert R J Elliott
  • Eric Strobl

Abstract

In this paper we extend the debate on the environmental implications of foreign direct investment in developing countries by examining a new mechanism through which foreign influence can affect the environmental performance of firms. We focus on the extent to which key workers who have had previous training or experience in a foreign owned firm transfer and utilise their knowledge gained to the benefit of the local environment. To this end we use detailed firm-level data on manufacturing firms in Ghana. Our econometric results sugggest that the foreign training of a firm's decision maker does reduce fuel use, particularly so in foreign owned firms. Foreign ownership per se does not influence fuel use or total energy use but is found to increase electricity use, perhaps the cleanest form of energy used by Ghanaian firms.

Suggested Citation

  • Matthew A Cole & Robert R J Elliott & Eric Strobl, 2007. "The Environmental Performance of Firms: The Role of Foreign Ownership, Training, and Experience," Discussion Papers 07-08, Department of Economics, University of Birmingham.
  • Handle: RePEc:bir:birmec:07-08
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    References listed on IDEAS

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    More about this item

    Keywords

    Environment; Spillovers; FOreign Direct Investment;

    JEL classification:

    • 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
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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