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Titel
Do environmental regulations effect FDI decisions? The pollution haven hypothesis revisited / Haeyeon Yoon (Sogang University), Almas Heshmati (Sogang University and IZA) ; IZA Institute of Labor Economics
VerfasserYoon, Haeyeon ; Heshmati, Almas In der Gemeinsamen Normdatei der DNB nachschlagen
KörperschaftForschungsinstitut zur Zukunft der Arbeit In der Gemeinsamen Normdatei der DNB nachschlagen
ErschienenBonn, Germany : IZA Institute of Labor Economics, July 2017
Ausgabe
Elektronische Ressource
Umfang1 Online-Ressource (21 Seiten) : Diagramme
SerieDiscussion paper ; no. 10897
URNurn:nbn:de:hbz:5:2-136141 Persistent Identifier (URN)
Zugriffsbeschränkung
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Volltexte
Do environmental regulations effect FDI decisions? The pollution haven hypothesis revisited [0.59 mb]
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Zusammenfassung

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.