Optimal Environmental Regulation on International Joint Ventures in Developing Countries

Eun-Mo Yang () and Young-Han Kim
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Eun-Mo Yang: Sungkyunkwan University

No 902860, Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences

Abstract: This paper examines how environmental regulation affects the FDI strategies of parent firms in developing countries (the South) and developed countries (the North) when there are differences in the abatement technology and R&D efficiency between these countries. If there are more lenient regulations, it is more attractive to form a JV in the South. However, southern governments opt for lenient regulation when the abatement technology of the North, while not good, is still superior to that of the South. Furthermore, the welfare of the developing country is optimal when forming a domestic JV. This paper focused on FDI strategies in terms of the welfare of the South, with a view to being able to provide better policy modeling for the developing countries.

Keywords: Emission standard; R&D; Developing country; Environmental regulation (search for similar items in EconPapers)
JEL-codes: F18 F23 Q56 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2014-12
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
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Published in Proceedings of the Proceedings of the 14th International Academic Conference, Malta, Dec 2014, pages 493-513

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Persistent link: https://EconPapers.repec.org/RePEc:sek:iacpro:0902860

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