Management Papers
Document Type
Journal Article
Date of this Version
2-2003
Publication Source
Journal of Development Economics
Volume
70
Issue
1
Start Page
1
Last Page
23
DOI
10.1016/S0304-3878(02)00084-6
Abstract
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 U.S. outbound investment. Although the pattern of U.S. foreign investment is skewed towards industries with high costs of pollution abatement, the results are not robust across specifications.
Copyright/Permission Statement
© 2003. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/
Keywords
foreign investment, pollution haven, environment, multinational
Recommended Citation
Eskeland, G. S., & Harrison, A. E. (2003). Moving to Greener Pastures? Multinationals and the Pollution Haven Hypothesis. Journal of Development Economics, 70 (1), 1-23. http://dx.doi.org/10.1016/S0304-3878(02)00084-6
Date Posted: 27 November 2017
This document has been peer reviewed.