Environmental regulation and MNEs location: Does CSR matter?

Lammertjan Dam, Bert Scholtens*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

50 Citations (Scopus)

Abstract

We investigate whether firms with relatively low environmental standards are more often located in countries that are poor, corrupt or have weak environmental regulations. We find new empirical evidence in favor of the Pollution Haven Hypothesis, which states that MNEs are transferring their dirty operations to countries with weak environmental regulation. Our findings suggest that these are not necessarily the poorest or most corrupt countries. We establish that MNEs with strong social responsibility avoid locating their operations in countries with weak environmental regulation.

Original languageEnglish
Pages (from-to)55-65
Number of pages11
JournalEcological Economics
Volume67
Issue number1
DOIs
Publication statusPublished - 15 Aug 2008

Keywords

  • Corporate social responsibility
  • Internationalization
  • Multinational Enterprise
  • Pollution Haven Hypothesis
  • Regulation

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