Foreign direct investments and "green" consumers
Natalia Vechiu ()
Additional contact information
Natalia Vechiu: CRET-LOG, Aix Marseille University
Economics Bulletin, 2018, vol. 38, issue 1, 159-181
Abstract:
In this paper, we focus on the relationship between foreign direct investment, environmental norms and consumers' ecological preferences. This empirical study is based on previous theoretical models showing that weak unilateral environmental regulations create pollution havens attracting FDIs, which leads to even more pollution. However, our first non parametrical estimations on data coming from both developed and developing countries show that outward FDIs decrease with local consumers' “greenness†. This is further confirmed by a deeper analysis, showing that home and host consumers' “greenness†has a very strong negative impact on outward FDIs. The results also show that consumers' “greenness†may act as a counterweight to the pollution haven effect.
Keywords: foreign direct investment; "green" consumers; pollution havens; gravity equations (search for similar items in EconPapers)
JEL-codes: F2 Q5 (search for similar items in EconPapers)
Date: 2018-02-09
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2018/Volume38/EB-18-V38-I1-P17.pdf (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-17-00941
Access Statistics for this article
More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().