EconPapers    
Economics at your fingertips  
 

Environmental regulation and French firms location abroad: An economic geography model in an international comparative study

Sonia Ben Kheder and Natalia Zugravu-Soilita

Ecological Economics, 2012, vol. 77, issue C, 48-61

Abstract: In this study, we re-examine the pollution haven hypothesis by a fresh take on both its theoretical and empirical aspects. The originality of our work is twofold. First, we apply an economic geography model with the aim of deriving a rigorous specification for the impact of environmental regulation on firms' location choice. Second, we test a conditional logit model using French firm-level data in an international comparative study. We confirm evidence of a strong pollution haven effect for our pooled sample of countries receiving French direct investments. However, through a sensitivity analysis, we validate this finding for developed countries and most of emerging economies and Central and Eastern European countries, but not for most countries of the Commonwealth of Independent States and developing countries, where a more stringent environmental regulation seems to attract investments. Furthermore, we highlight a forward looking behavior of firms, in terms of their location decision-making.

Keywords: FDI; Economic geography; Environmental regulation; Pollution havens (search for similar items in EconPapers)
JEL-codes: F12 F18 Q28 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (42) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0921800911004125
Full text for ScienceDirect subscribers only

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:eee:ecolec:v:77:y:2012:i:c:p:48-61

DOI: 10.1016/j.ecolecon.2011.10.005

Access Statistics for this article

Ecological Economics is currently edited by C. J. Cleveland

More articles in Ecological Economics from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-11-21
Handle: RePEc:eee:ecolec:v:77:y:2012:i:c:p:48-61