Download or read book Pollution Havens and Foreign Direct Investment written by Beata K. Smarzynska Javorcik and published by World Bank Publications. This book was released on 2001 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: The "pollution haven" hypothesis states that multinational firms, particularly those in highly polluting industries, relocate to countries with weak environmental standards. Despite the plausibility and popularity of this hypothesis, Smarzynska and Wei find only weak evidence in its favor.

Download or read book Pollution Havens and Foreign Direct Investment written by Shang-Jin Wei and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: September 2001 The "pollution haven" hypothesis states that multinational firms, particularly those in highly polluting industries, relocate to countries with weak environmental standards. Despite the plausibility and popularity of this hypothesis, Smarzynska and Wei find only weak evidence in its favor. The "pollution haven" hypothesis refers to the possibility that multinational firms, particularly those engaged in highly polluting activities, relocate to countries with weaker environmental standards. Despite the plausibility and popularity of this hypothesis, there is little evidence to support it. Smarzynska and Wei identify four obstacles that may have impeded researchers' ability to find evidence in favor of the "pollution haven" hypothesis: * The possibility that some features of host countries, such as bureaucratic corruption, may deter inward foreign direct investment and also be positively correlated with lax environmental standards. Omitting this information in statistical analyses may produce misleading results. * The possibility that country- or industry-level data, typically used in the literature, may have masked the effect at the firm level. * Difficulties associated with measuring environmental standards of the host countries. * Difficulties associated with measuring the pollution intensity of the multinational firms. The authors attempt to surmount these obstacles by explicitly taking into account corruption in host countries and using a firm-level data set on investment projects in 24 transition economies. With these improvements, the authors find some support for the "pollution haven" hypothesis, but evidence is still weak and does not survive numerous robustness checks. This paper--a product of Trade, Development Research Group--is part of a larger effort in the group to study the effects of foreign direct investment on developing countries. The study was funded by the Bank's Research Support Budget under the research project "Corruption, Pollution, and Location of International Capital Flows." The authors may be contacted at [email protected] or [email protected].

Download or read book Agglomeration Effects in Foreign Direct Investment and the Pollution Haven Hypothesis written by Ulrich J. Wagner and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Are Foreign Investors Attracted to Weak Environmental Regulations written by Judith Myrle Dean and published by World Bank Publications. This book was released on 2005 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: Results from 2,886 manufacturing joint venture projects from 1993--96 show that EJVs from all source countries go into provinces with high concentrations of foreign investment, relatively abundant stocks of skilled workers, concentrations of potential local suppliers, special incentives, and less state ownership. Environmental stringency does affect location choice, but not as expected. Low environmental levies are a significant attraction only for joint ventures in highly-polluting industries with partners from Hong Kong, Macao, and Taiwan (China). In contrast, joint ventures with partners from OECD sources are not attracted by low environmental levies, regardless of the pollution intensity of the industry. The authors discuss the likely role of technological differences in explaining these results"--Abstract.

Download or read book Pollution Havens and Foreign Direct Investment written by Beata Smarzynska Javorcik and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The "pollution haven" hypothesis states that multinational firms, particularly those in highly polluting industries, relocate to countries with weak environmental standards. Despite the plausibility and popularity of this hypothesis, Smarzynska and Wei find only weak evidence in its favor. The "pollution haven" hypothesis refers to the possibility that multinational firms, particularly those engaged in highly polluting activities, relocate to countries with weaker environmental standards. Despite the plausibility and popularity of this hypothesis, there is little evidence to support it. Smarzynska and Wei identify four obstacles that may have impeded researchers' ability to find evidence in favor of the "pollution haven" hypothesis: - The possibility that some features of host countries, such as bureaucratic corruption, may deter inward foreign direct investment and also be positively correlated with lax environmental standards. Omitting this information in statistical analyses may produce misleading results. - The possibility that country- or industry-level data, typically used in the literature, may have masked the effect at the firm level. - Difficulties associated with measuring environmental standards of the host countries. - Difficulties associated with measuring the pollution intensity of the multinational firms. The authors attempt to surmount these obstacles by explicitly taking into account corruption in host countries and using a firm-level data set on investment projects in 24 transition economies. With these improvements, the authors find some support for the "pollution haven" hypothesis, but evidence is still weak and does not survive numerous robustness checks. This paper - a product of Trade, Development Research Group - is part of a larger effort in the group to study the effects of foreign direct investment on developing countries. The study was funded by the Bank's Research Support Budget under the research project "Corruption, Pollution, and Location of International Capital Flows."

Download or read book Foreign Direct Investment and The Pollution Haven Hypothesis written by Grégoire Garsous and published by . This book was released on 2017 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: Business has often been arguing against the introduction of a carbon tax because it would induce a pollution haven effect - reducing the competitiveness of domestic production and shifting both production and emissions to countries where fossil fuels are cheaper. In this paper, we shed light on such claims by estimating the effect of energy prices on one of the possible channels of the pollution haven effect - foreign direct investment (FDI). Using data for listed firms in 23 OECD countries, we find that the effect of higher domestic energy prices on firms' outward stock of FDI has been significant and positive, but small in magnitude. This effect seems driven by more permanent shocks to energy prices, in particular by those coming from more stringent upstream environmental policies

Download or read book Foreign Direct Investment and the Pollution Haven Hypothesis in Five ASEAN Nations written by Yasmine Merican and published by . This book was released on 2006 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Moving to Greener Pastures written by Gunnar S. Eskeland and published by . This book was released on 2002 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents evidence on whether multinationals are flocking to developing country 'pollution havens'. Although we find some evidence that foreign investors locate in sectors with high levels of air pollution, the evidence is weak at best. We then examine whether foreign firms pollute less than their peers. We find that foreign plants are significantly more energy efficient and use cleaner types of energy. We conclude with an analysis of US outbound investment. Although the pattern of US foreign investment is skewed towards industries with high costs of pollution abatement, the results are not robust across specifications.

Download or read book Handbook of Research on Strategic Management for Current Energy Investments written by Yüksel, Serhat and published by IGI Global. This book was released on 2021-06-11 with total page 422 pages. Available in PDF, EPUB and Kindle. Book excerpt: Energy has a wide range of uses within a country, includin socially and economically. Providing everything from warmth and light to raw materials for industrial production, energy is an essential need for countries. Due to the importance of energy for countries, energy policies are extremely vital, and energy needs to be affordable, eco-friendly, and continuous so countries can provide for their people and continue to develop industrially. Without the availability of energy that is cheap and continuous, the effectiveness in the energy supply process will be reduced, and society will experience difficulties in having its daily energy needs met. The Handbook of Research on Strategic Management for Current Energy Investments analyzes current trends in energy production and use and identifies energy investment strategies in order to support affordable and available energy for all. Chapters within the book cover technological developments that contribute to the reduction of price in energy production as well as renewable energy sources that provide continuity in energy production but do not emit carbon into the atmosphere. This book highlights topics that cover environmental pollution, energy pricing, economic growth, carbon dioxide emission, and energy management. It is ideal for engineers, technicians, managers, researchers, academicians, policymakers, government officials, and students in related fields.

Download or read book The Economics of Pollution Havens written by Don Fullerton and published by Edward Elgar Publishing. This book was released on 2006 with total page 442 pages. Available in PDF, EPUB and Kindle. Book excerpt: A pollution haven may arise if environmental stringency differs between countries, when capital is mobile, and when trade rules allow firms to relocate and still sell their products to the same customers. This cohesive volume analyzes how country characteristics determine environmental rules, how those rules affect production costs, trade, and investment flows, how those flows affect pollution, prices, and incomes, and finally how all of these last considerations feed back into environmental rules. The sixteen papers collected here represent the most recent and significant advancements of knowledge on the subject. The contributors, all well-known scholars in the area, investigate how polluter location decisions respond to pollution policies, how local environmental rules respond to those location decisions, and how trade liberalization affects the incentives of governments to regulate dirty industries. The volume begins with a comprehensive overview by M. Scott Taylor and goes on to explore how the usual effects of pollution havens can be reversed. Also covered are the ways in which managed trade and trade liberalization, the regulation of multinationals, political stability and emissions controls impact pollution havens. Written for a multidisciplinary audience, The Economics of Pollution Havens will be of interest to those working in the areas of economics, international trade, political science, public policy, and environmental studies.

Download or read book Do Environmental Regulations Effect FDI Decisions written by Haeyeon Yoon and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In an attempt to verify the pollution haven hypothesis, this study investigates the impact of environmental regulations on foreign direct investment (FDI). We use Korean outward FDI data covering the manufacturing sector for 2009-15. The study not only considers the stringency but also the enforcement of environmental regulations when measuring the degree of the host country's environmental regulations. Since the pollution haven's effects indicate moving the polluting production stages from the home country to other (host) countries, we distinguish between investments in the 'production' part from that in the non-production part using location information about the host country. The main results of the estimation of a FDI model show that the stricter the regulations in host countries in Asia the lower the FDI both intensively and extensively to those countries. This supports the prevalence of the effects of pollution havens. However, before we separate the FDI into the production part, the effect of environmental regulations on FDI is hindered by the FDI in the non-production part. The results indicate that environmental regulations are determinants of FDI in the production part, while environmental regulations do not have a significant effect on FDI decisions when the entire FDI is considered.

Download or read book Does Environmental Governance Matter for Foreign Direct Investment Testing the Pollution Haven Hypothesis for Indian States written by Vinish Kathuria and published by . This book was released on 2018 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper attempts to examine the role of environmental governance on foreign direct investment by testing the pollution haven hypothesis for 21 Indian states for the period 2002-2010. To test for the hypothesis, this study computes an abatement expenditure index adjusted for industrial composition at the state level using Annual Survey of Industries plant-level data. The methodology used is based on that proposed by Levinson (2001). The index compares actual pollution abatement expenditures in a particular state, unadjusted for industrial composition, to predicted abatement expenditures in the same state. (The predictions are based on nationwide abatement expenditures by industry and each state's industrial composition.) If the adjusted index is low for a state, it implies that the state has poor environmental governance, which would be expected to induce foreign firms to invest. However, the results do not find any evidence of the pollution haven hypothesis in the Indian context. Other infrastructure and market-access-related variables are more important in influencing a foreign firm's investment decisions than environmental stringency.

Download or read book Foreign Direct Investment and Environmental Regulations written by Ayse Mujde Erdogan and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents a survey of the literature on the relationship between foreign direct investment (FDI) and environmental policy. First, I focus on empirical studies that analyse the impact of environmental costs on foreign investment locations. Next, I review the main studies that attempt to explain the lack of evidence for the pollution haven hypothesis. Then, I discuss the literature on the impact of FDI on local environmental regulations by concentrating on two recent political economy models. Finally, I conclude by summarizing the main findings of the literature and suggesting some future research directions.

Download or read book Do Environmental Regulations Effect FDI Decisions The Pollution Haven Hypothesis Revisited written by Haeyeon Yoon and published by . This book was released on 2017 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: In an attempt to verify the pollution haven hypothesis, this study investigates the impact of environmental regulations on foreign direct investment (FDI). We use Korean outward FDI data covering the manufacturing sector for 2009-15. The study not only considers the stringency but also the enforcement of environmental regulations when measuring the degree of the host country's environmental regulations. Since the pollution haven's effects indicate moving the polluting production stages from the home country to other (host) countries, we distinguish between investments in the 'production' part from that in the non-production part using location information about the host country. The main results of the estimation of a FDI model show that the stricter the regulations in host countries in Asia the lower the FDI both intensively and extensively to those countries. This supports the prevalence of the effects of pollution havens. However, before we separate the FDI into the production part, the effect of environmental regulations on FDI is hindered by the FDI in the non-production part. The results indicate that environmental regulations are determinants of FDI in the production part, while environmental regulations do not have a significant effect on FDI decisions when the entire FDI is considered.

Download or read book Environmental Regulation as a Determinant of Foreign Direct Investment written by Sharon Red Escoto and published by . This book was released on 2007 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Trade and the Environment written by Brian R. Copeland and published by Princeton University Press. This book was released on 2013-12-03 with total page 305 pages. Available in PDF, EPUB and Kindle. Book excerpt: Nowhere has the divide between advocates and critics of globalization been more striking than in debates over free trade and the environment. And yet the literature on the subject is high on rhetoric and low on results. This book is the first to systematically investigate the subject using both economic theory and empirical analysis. Brian Copeland and Scott Taylor establish a powerful theoretical framework for examining the impact of international trade on local pollution levels, and use it to offer a uniquely integrated treatment of the links between economic growth, liberalized trade, and the environment. The results will surprise many. The authors set out the two leading theories linking international trade to environmental outcomes, develop the empirical implications, and examine their validity using data on measured sulfur dioxide concentrations from over 100 cities worldwide during the period from 1971 to 1986. The empirical results are provocative. For an average country in the sample, free trade is good for the environment. There is little evidence that developing countries will specialize in pollution-intensive products with further trade. In fact, the results suggest just the opposite: free trade will shift pollution-intensive goods production from poor countries with lax regulation to rich countries with tight regulation, thereby lowering world pollution. The results also suggest that pollution declines amid economic growth fueled by economy-wide technological progress but rises when growth is fueled by capital accumulation alone. Lucidly argued and authoritatively written, this book will provide students and researchers of international trade and environmental economics a more reliable way of thinking about this contentious issue, and the methodological tools with which to do so.

Download or read book Location Decision of Foreign Direct Investment written by Klarizze Puzon and published by . This book was released on 2013 with total page 71 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines whether lax environmental policy and abundant natural resources both attract foreign direct investment (FDI). At first, their potential effects are discussed using arguments from the pollution haven hypothesis and the natural resource curse. Using cross-country Ordinary Least Square (OLS) regressions and robustness checks like Instrumental Variable Two-Stage Least Squares (IV-2SLS), it was observed that foreign firms prefer to locate in countries that are resource-abundant or resource export-dependent. Inward FDI also tend to be directed toward countries with relatively stricter environmental regulations.