Cover Image
Read Now

Environmental Policy Stringency and Foreign Direct Investment

This paper examines empirically whether countries with relatively more lax environmental regimes have a comparative advantage in their competition for foreign direct investment. It seeks to contribute to the literature in several important ways. First, we use a measure of environmental stringency wh...

Full description

Bibliographic Details
Main Author: Kalamova, Margarita
Other Authors: Johnstone, Nick
Format: eBook
Language:English
Published: Paris OECD Publishing 2011
Series:OECD Environment Working Papers
Subjects:
Finance And Investment
Environment
Online Access:
Collection: OECD Books and Papers - Collection details see MPG.ReNa
LEADER 02033nma a2200265 u 4500
001 EB001832851
003 EBX01000000000000000999297
005 00000000000000.0
007 cr|||||||||||||||||||||
008 180616 ||| eng
100 1 |a Kalamova, Margarita 
245 0 0 |a Environmental Policy Stringency and Foreign Direct Investment  |h Elektronische Ressource  |c Margarita, Kalamova and Nick, Johnstone 
260 |a Paris  |b OECD Publishing  |c 2011 
300 |a 31 p.  |c 21 x 29.7cm 
653 |a Finance and Investment 
653 |a Environment 
700 1 |a Johnstone, Nick 
041 0 7 |a eng  |2 ISO 639-2 
989 |b OECD  |a OECD Books and Papers 
490 0 |a OECD Environment Working Papers 
024 8 |a /10.1787/5kg8ghvf85d5-en 
856 4 0 |a oecd-ilibrary.org  |u https://doi.org/10.1787/5kg8ghvf85d5-en  |x Verlag  |3 Volltext 
082 0 |a 363 
082 0 |a 330 
520 |a This paper examines empirically whether countries with relatively more lax environmental regimes have a comparative advantage in their competition for foreign direct investment. It seeks to contribute to the literature in several important ways. First, we use a measure of environmental stringency which is based on managers' perceptions of the stringency in a given country and which gives us the opportunity to analyse a broad sample of both source and host countries. Second, an important strength of the technical analysis is the non-linear modeling of the impact of policy stringency on FDI. Third, we use a 'state-of-theart' FDI modelling strategy, which allows us to differentiate between different models of production fragmentation. Support is found for the effect of relative environmental policy stringency on foreign direct investment patterns. However, the effect is relatively small in comparison with other factors, including more general regulatory quality. Moreover, the relationship appears to be non-linear with the effects of increased relative environmental policy stringency in the host country decreasing after a certain threshold 

Similar Items