Environmental regulation and French firms location abroad: An economic geography model in an international comparative study
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- handle: 10670/1.m6yrjo
- hal: hal-03709122
- doi: 10.1016/j.ecolecon.2011.10.005
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info:eu-repo/semantics/altIdentifier/doi/10.1016/j.ecolecon.2011.10.005
info:eu-repo/semantics/OpenAccess
Mots-clés
FDI Economic geography Environmental regulation Pollution havens F - International Economics/F.F1 - Trade/F.F1.F12 - Models of Trade with Imperfect Competition and Scale Economies • Fragmentation F - International Economics/F.F1 - Trade/F.F1.F18 - Trade and Environment Q - Agricultural and Natural Resource Economics • Environmental and Ecological Economics/Q.Q5 - Environmental Economics/Q.Q5.Q58 - Government Policy Q - Agricultural and Natural Resource Economics • Environmental and Ecological Economics/Q.Q2 - Renewable Resources and Conservation/Q.Q2.Q28 - Government PolicySujets proches
Environmental pollution Chemical pollution Pollution--Control Contamination of environment World economics Geography, Economic Frenchmen (French people) Pattern Model Businesses Firms Companies Enterprises Business organizations Organizations, BusinessCiter ce document
Sonia Ben Kheder et al., « Environmental regulation and French firms location abroad: An economic geography model in an international comparative study », HAL-SHS : économie et finance, ID : 10.1016/j.ecolecon.2011.10.005
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Résumé
In this study, we reexamine the pollution haven hypothesis by a fresh take on both its theoretical and empirical aspects. The originality of our work is twofold. First, we apply an economic geography model with the aim of deriving a rigorous specification for the impact of environmental regulation on firms' location choice. Second, we test a conditional logit model using French firm-level data in an international comparative study. We confirm evidence of a strong pollution haven effect for our pooled sample of countries receiving French direct investments. However, through a sensitivity analysis, we validate this finding for developed countries and most of emerging economies and Central and Eastern European countries, but not for most Commonwealth of Independent States and developing countries, where a more stringent environmental regulation seems to attract investments. Furthermore, we highlight a forward looking behavior of firms, in terms of when deciding to locate in a country.