Environmental impact of FDI – the case of US subsidiaries

IF 4.6 Q2 MATERIALS SCIENCE, BIOMATERIALS
J. P. Bento, A. Moreira
{"title":"Environmental impact of FDI – the case of US subsidiaries","authors":"J. P. Bento, A. Moreira","doi":"10.1108/MBR-06-2017-0038","DOIUrl":null,"url":null,"abstract":"\nPurpose\nThis paper aims to examine how foreign direct investment (FDI) and firm-specific advantages (FSAs) of US multinational enterprises (MNEs) majority-owned subsidiaries affect environmental pollution in host countries. The research results contribute to helping managers and policymakers understand the environmental impact of MNEs activities, and encourage these firms to develop environmentally responsible management (ERM) as an element of their corporate social responsibility practice.\n\n\nDesign/methodology/approach\nPanel data consisting of developing and developed countries spanning the years 2004 through 2014 are used. The dynamic panel generalised method of moments technique is implemented. This method avoids common estimation bias, such as endogeneity, heteroscedasticity and autocorrelation.\n\n\nFindings\nThis paper finds that the direct environmental impacts of FDI vary significantly between the two groups of countries. The environmental benefits of FDI to the recipient country are achieved through capital and technology transfer. The study also reveals that R&D intensity moderates the relationship between FDI and environmental pollution in both developing and developed countries in such a way that environmental pollution decreases.\n\n\nResearch limitations/implications\nFuture research could explore the environmental impact of MNEs on host countries by considering both equity and non-equity entry modes. The findings offer some support to host government policies offering generous incentive packages to attract R&D investment to improve environmental pollution. This research raises questions as to the reasons corporations operating in developing and developed countries should pursue their ERM practices.\n\n\nOriginality/value\nThis research examines both the direct effect of FDI and the moderating effects of FSAs on the relationship between FDI and the environment. Although previous studies have already looked at the relationship between FDI and the environment, the moderating effect of FSAs is very under-developed in this relationship.\n","PeriodicalId":2,"journal":{"name":"ACS Applied Bio Materials","volume":null,"pages":null},"PeriodicalIF":4.6000,"publicationDate":"2019-09-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1108/MBR-06-2017-0038","citationCount":"6","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"ACS Applied Bio Materials","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1108/MBR-06-2017-0038","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"MATERIALS SCIENCE, BIOMATERIALS","Score":null,"Total":0}
引用次数: 6

Abstract

Purpose This paper aims to examine how foreign direct investment (FDI) and firm-specific advantages (FSAs) of US multinational enterprises (MNEs) majority-owned subsidiaries affect environmental pollution in host countries. The research results contribute to helping managers and policymakers understand the environmental impact of MNEs activities, and encourage these firms to develop environmentally responsible management (ERM) as an element of their corporate social responsibility practice. Design/methodology/approach Panel data consisting of developing and developed countries spanning the years 2004 through 2014 are used. The dynamic panel generalised method of moments technique is implemented. This method avoids common estimation bias, such as endogeneity, heteroscedasticity and autocorrelation. Findings This paper finds that the direct environmental impacts of FDI vary significantly between the two groups of countries. The environmental benefits of FDI to the recipient country are achieved through capital and technology transfer. The study also reveals that R&D intensity moderates the relationship between FDI and environmental pollution in both developing and developed countries in such a way that environmental pollution decreases. Research limitations/implications Future research could explore the environmental impact of MNEs on host countries by considering both equity and non-equity entry modes. The findings offer some support to host government policies offering generous incentive packages to attract R&D investment to improve environmental pollution. This research raises questions as to the reasons corporations operating in developing and developed countries should pursue their ERM practices. Originality/value This research examines both the direct effect of FDI and the moderating effects of FSAs on the relationship between FDI and the environment. Although previous studies have already looked at the relationship between FDI and the environment, the moderating effect of FSAs is very under-developed in this relationship.
外国直接投资对环境的影响——以美国子公司为例
本文旨在研究美国跨国企业(MNEs)多数股权子公司的外国直接投资(FDI)和公司特定优势(FSAs)如何影响东道国的环境污染。研究结果有助于管理者和决策者理解跨国公司活动对环境的影响,并鼓励这些公司发展环境责任管理(ERM),作为其企业社会责任实践的一个要素。设计/方法/方法使用了2004年至2014年期间发展中国家和发达国家的面板数据。实现了动态面板广义矩量法。该方法避免了常见的估计偏差,如内生性、异方差和自相关。本文发现FDI对环境的直接影响在两类国家之间存在显著差异。外国直接投资对接受国的环境效益是通过资本和技术转让实现的。研究还发现,研发强度对发展中国家和发达国家FDI与环境污染之间的关系具有调节作用,从而使环境污染减少。未来的研究可以通过考虑公平和非公平进入模式来探讨跨国公司对东道国的环境影响。研究结果为东道国政府提供慷慨的激励方案以吸引研发投资以改善环境污染的政策提供了一些支持。这项研究提出了一个问题,即在发展中国家和发达国家经营的公司应该追求他们的ERM实践的原因。原创性/价值本研究考察了外商直接投资的直接作用和金融服务机构对外商直接投资与环境关系的调节作用。虽然以前的研究已经考察了外国直接投资与环境之间的关系,但金融服务体系在这种关系中的调节作用还很不充分。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
ACS Applied Bio Materials
ACS Applied Bio Materials Chemistry-Chemistry (all)
CiteScore
9.40
自引率
2.10%
发文量
464
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术官方微信