Economics at your fingertips  

Does it pay for cities to be green? An investigation of FDI inflows and environmental sustainability

Niccolò Pisani (), Ans Kolk (), Václav Ocelík () and Ganling Wu ()
Additional contact information
Niccolò Pisani: University of Amsterdam Business School
Ans Kolk: University of Amsterdam Business School
Václav Ocelík: University of Amsterdam Business School
Ganling Wu: University of Amsterdam Business School

Journal of International Business Policy, 2019, vol. 2, issue 1, 62-85

Abstract: Abstract Recent years have seen growing interest in a leading role for cities in addressing major environmental sustainability challenges including cleaner air and water. While geographers have long studied urban governance responses, international business (IB) scholars have embraced city-level analyses only in the past decade, primarily to examine multinationals’ location strategies. Thus far, IB has not studied cities’ environmental sustainability in relation to foreign direct investment (FDI) inflows. Our paper does so by analyzing whether it ‘pays’ to be green for cities in attracting FDI inflows, using a comprehensive sample of Chinese cities of different sizes over a 7-year period comprising 918 city-year observations. A fixed-effects panel data estimation shows that it indeed pays for cities to be green, specifically considering air quality and waste water treatment, two key locational factors exposing different mechanisms. Implications for green urban and business policies and for IB research are discussed.

Keywords: foreign direct investment; sustainability; environment; cities; urban; China (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:

Ordering information: This journal article can be ordered from

DOI: 10.1057/s42214-018-00017-2

Access Statistics for this article

Journal of International Business Policy is currently edited by Sarianna Lundan, Ari Van Assche and Anne Hoekman

More articles in Journal of International Business Policy from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla ().

Page updated 2020-02-07
Handle: RePEc:pal:joibpo:v:2:y:2019:i:1:d:10.1057_s42214-018-00017-2