The Effect of Norm Dynamics on the Relationship between Foreign Direct Investment and Environmental Regulation
0
조회
0
다운로드
1
인용
0
참고문헌
키워드
초록
The relationship between foreign direct investment (FDI) and environmental regulation in a host country has been controversial. The Pollution Haven Hypothesis assumes that countries are more likely to keep lax environmental standards to attract FDI. In contrast, the Pollution Halo Hypothesis states that more stringent environmental regulations are more attractive to multinational corporations (MNCs) that applies global environmental standards. This study attempts to provide a bridge to fill the gap between them by focusing on how the normative contexts of a home country interact with multinational corporations’ behaviors. We argue that stringent environment regulations of home countries motivate MNCs to act as norm entrepreneurs in host countries while they also seek for the cost-efficient ways of transborder production. Therefore, the stringency level of environmental standards in home countries moderates the effect of FDI on the environmental regulations of host countries. The findings of the analysis suggest that FDI from the country with higher environmental standards makes a contribution that more stringent environmental regulations could be adopted in the host country.
Abstract
The relationship between foreign direct investment (FDI) and environmental regulation in a host country has been controversial. The Pollution Haven Hypothesis assumes that countries are more likely to keep lax environmental standards to attract FDI. In contrast, the Pollution Halo Hypothesis states that more stringent environmental regulations are more attractive to multinational corporations (MNCs) that applies global environmental standards. This study attempts to provide a bridge to fill the gap between them by focusing on how the normative contexts of a home country interact with multinational corporations’ behaviors. We argue that stringent environment regulations of home countries motivate MNCs to act as norm entrepreneurs in host countries while they also seek for the cost-efficient ways of transborder production. Therefore, the stringency level of environmental standards in home countries moderates the effect of FDI on the environmental regulations of host countries. The findings of the analysis suggest that FDI from the country with higher environmental standards makes a contribution that more stringent environmental regulations could be adopted in the host country.
참고문헌 (34)
- Do Stringent Environmental Policies Deter FDI? M&A versus Greeneld, "Bialek, Sylwia", CESifo, ~, pp.CESifo Working Paper No.5262 (2015)
- Brunnermeier, Smita B, "Examining the Evidence on Environmental Regulations and Industry Location", Journal of Environment & Development, 13(1), pp.6~41 (2004)
- Cortell, Andrew P., "Understanding the Domestic Impact of International Norms: A Research Agenda", International Studies Review, 2(1), pp.65~87 (2000)
- Dam, Lammertjan, "Environmental Regulation and MNEs Location: Does CSR Matter?", Ecological Economics, 67(1), pp.55~65 (2008)
- Dam, Lammertjan, "The Curse of the Haven: The Impact of Multinational Enterprise on Environmental Regulation", Ecological Economics, 78, pp.148~156 (2012)
- Dean, Judith M, "Are Foreign Investors Attracted to Weak Environmental Regulations? Evaluating the Evidence from China", Journal of Development Economics, 90(1), pp.1~13 (2009)
- Dijkstra, Bouwe R, "Environmental Regulation: An Incentive for Foreign Direct Investment", Review of International Economics, 19(3), pp.568~578 (2011)
- Dong, Baomin, "FDI and Environmental Regulation: Pollution Haven or a Race to the Top?", Journal of Regulatory Economics, 41(2), pp.216~237 (2012)
- Elliott, Robert J. R., "Environmental Regulation Induced Foreign Direct Investment", Environmental and Resource Economics, 55(1), pp.141~158 (2013)
- Eskeland, Gunnar S., "Moving to Greener Pastures? Multinationals and the Pollution Haven Hypothesis", Journal of Development Economics, 70(1), pp.1~23 (2003)
- Finnemore, Martha, "International Norm Dynamics and Political Change", International Organization, 52(4), pp.887~917 (1998)
- Harjoto, Maretno A, "Corporate Governance and CSR Nexus", Journal of Business Ethics, 100(1), pp.45~67 (2011)
- Hart, Stuart L., "A Natural-Resource-Based View of the Firm", Academy of Management Review, 20(4), pp.986~1014 (1995)
- He, Jie, "Pollution Haven Hypothesis and Environmental Impacts of Foreign Direct Investment: The Case of Industrial Emission of Sulfur Dioxide (SO2) in Chinese Provinces", Ecological Economics, 60(1), pp.228~245 (2006)
- Helpman, Elhanan, "Export versus FDI with Heterogeneous Firms", American Economic Review, 94(1), pp.300~316 (2004)
- Henisz, Witold J., "The Institutional Environment for Economic Growth", Economics & Politics, 12(1), pp.1~31 (2000)
- Henisz, Witold J., "The Institutional Environment for Multinational Investment", Journal of Law, Economics, and Organization, 16(2), pp.334~364 (2000)
- Jaffe, Adam B., "Environmental Regulation and the Competitiveness of US Manufacturing: What Does the Evidence Tell Us?", Journal of Economic Literature, 33(1), pp.132~163 (1995)
- Jo, Hyeran, "Dispute Settlement Mechanisms in Preferential Trade Agreements: Democracy, Boilerplates, and the Multilateral Trade Regime", Journal of Conflict Resolution, 56(6), pp.1041~1068 (2012)
- Kolk, Ans, "A Perspective on Multinational Enterprises and Climate Change: Learning from “an Inconvenient Truth” Quest", Journal of International Business Studies, 39(8), pp.1359~1378 (2008)
- Kolk, Ans, "International Business, Corporate Social Responsibility and Sustainable Development", International Business Review, 19(2), pp.119~125 (2010)
- Letchumanan, Raman, "Reconciling the Conflict between the `Pollution-Haven’ Hypothesis and an Emerging Trajectory of International Technology Transfer", Research Policy, 29(1), pp.59~79 (2000)
- Levinson, Arik, "Unmasking the Pollution Haven Effect", International Economic Review, 49(1), pp.223~254 (2008)
- Madsen, Peter M., "Does Corporate Investment Drive a “Race to the Bottom” in Environmental Protection? A Reexamination of the Effect of Environmental Regulation on Investment", Academy of Management Journal, 52(6), pp.1297~1318 (2009)
- Mani, Muthukumara, "In Search of Pollution Havens? Dirty Industry in the World Economy, 1960 to 1995", Journal of Environment & Development, 7(3), pp.215~247 (1998)
- Munson, Patrick, "Feeding the Dragon: Managing Chinese Resource Acquisition in Africa", Seattle Journal of Environmental Law, 2(1) (2012)
- The Logic of Appropriateness, "Olsen, Johan P.", ARENA, 1~28, pp.ARENA Working Papers No.4 (2004)
- Porter, Michael E., "Toward a New Conception of the Environment competitiveness Relationship", Journal of Economic Perspectives, 9(4), pp.97~118 (1995)
- Porter, Michael E., "The Link between Competitive Advantage and Corporate Social Responsibility", Harvard Business Review, 84(12), pp.78~92 (2006)
- Revesz, Richard L., "Rehabilitating Interstate Competition: Rethinking the Race-to-the-Bottom Rationale for Federal Environmental Regulation", New York University Law Review, 67, pp.1210~1254 (1992)
- Sanna-Randaccio, Francesca, "The Impact of Unilateral Climate Policy with Endogenous Plant Location and Market Size Asymmetry", Review of International Economics, 20(3), pp.580~599 (2012)
- Shapiro, Matthew A., "Regionalism’s Challenge to the Pollution Haven Hypothesis: a Study of Northeast Asia and China", Pacific Review, 27(1), pp.27~47 (2014)
- Xepapadeas, Anastasios, "Environmental Policy and Competitiveness: The Porter Hypothesis and the Composition of Capital", Journal of Environmental Economics and Management, 37(2), pp.165~182 (1999)
- Xing, Yuquing, "Do Lax Environmental Regulations Attract Foreign Investment?", Environmental and Resource Economics, 21(1), pp.1~22 (2002)