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The Effects of Environmental Regulations on Foreign Direct Investment

Catherine Co and John List

Natural Field Experiments from The Field Experiments Website

Abstract: This paper employs a conditional logit model to estimate the effects of state environmental regulations on foreign multinational corporations' new plant location decisions from 1986 to 1993. The relationship between site choice and state environmental regulations is explored, using four measures of regulatory stringency. We find evidence that heterogeneous environmental policies across states do matter.

Date: 2000
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Citations: View citations in EconPapers (213)

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