Title

Effects Of Environmental Regulation On Foreign And Domestic Plant Births: Is There A Home Field Advantage?

Keywords

Environmental regulations; Foreign direct investment; Propensity score matching

Abstract

Whether environmental regulations alter capital flows remains a hotly debated issue. This paper uses county-level data to examine the location decisions of domestic and foreign firms in a single empirical model and tests for asymmetries by firm origin in the degree to which capital flows are influenced by environmental standards. We find that while domestic firms are influenced by environmental regulations, foreign firms are not. Since the benefits of foreign investment are well-documented-foreign plants typically provide more jobs and increase local wages by more than domestic plants-this result suggests a double-dividend is available: foreign plants provide an economic stimulus and are not unduly influenced by environmental protections. © 2004 Elsevier Inc. All rights reserved.

Publication Date

9-1-2004

Publication Title

Journal of Urban Economics

Volume

56

Issue

2

Number of Pages

303-326

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1016/j.jue.2004.03.007

Socpus ID

4344665627 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/4344665627

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