Skip to main content

The Determinants of Foreign Direct Investment Under Climate Change

  • Conference paper
  • First Online:
Book cover Entrepreneurship, Business and Economics - Vol. 2

Part of the book series: Eurasian Studies in Business and Economics ((EBES,volume 3/2))

  • 997 Accesses

Abstract

Foreign direct investment is very important for the economy of both host countries and home countries, especially for host countries in terms of employment and technology transfer. Many previous researches focused on economic determinants, both micro and macro level, rather on climate-related determinants which become important currently. As a result, this research analyzes the determinants of foreign direct investment under climate change using secondary panel data and fixed effect model. The results show that, real GDP of home countries, real GDP of host countries, and the degree of trade openness of host countries are positively related to foreign direct investment. Conversely, CO2 emissions per capita of home countries and wage rate of host countries are negatively related to foreign direct investment

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 179.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 229.00
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 229.00
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Dunning, J. H. (1980). Toward an eclectic theory of international production: Some empirical tests. Journal of International Business Studies, 11(1), 9–31.

    Article  Google Scholar 

  • Dunning, J. H. (1993). Multinational enterprises and the global economy. New York: Addison-Wesley.

    Google Scholar 

  • Kheder, S. B. (2005). Foreign direct investment and environmental regulation: A panel-data comparative analysis (Working Paper) (pdf). Accessed January 22, 2014, from http://www.webmeets.com/files/papers/ERE/WC3/611/1article.pdf

  • Krifa-Schneider, H. (2010). Business climate, political risk and FDI in developing countries: Evidence from panel data. International Journal of Economics and Finance, 2(5), 54–65.

    Article  Google Scholar 

  • List, J. A., & Co, C. Y. (2000). The effects of environmental regulations on foreign direct investment. Journal of Environmental Economics and Management, 40(1), 1–20.

    Article  Google Scholar 

  • List, J. A., McHone, W. W., & Millimet, D. L. (2004). Effects of environmental regulation on foreign and domestic plant births: Is there a home field advantage? Journal of Urban Economics, 56, 303–326.

    Article  Google Scholar 

  • Talamo, G. (2003). Institution, FDI and the gravity model (Department of Political Studies Working Paper) (pdf). Accessed January 22, 2014, from http://growthgroup3.ec.unipi.it/Siena2007/paper_talamo_siena.pdf

  • UNCTAD. (2013). World Investment Report 2013—Global value chains: Investment and trade for development. New York and Geneva: United Nations (pdf). Accessed January 22, 2014, from http://unctad.org/en/publicationslibrary/wir2013_en.pdf

  • UNCTAD. (2014). World Investment Report 2014—Investing in the SDGs: An action plan. New York and Geneva: United Nations (pdf). Accessed June 30, 2014, from http://unctad.org/en/PublicationsLibrary/wir2014_en.pdf

  • Xing, Y., & Kolstad, C. D. (2002). Do lax environmental regulations attract foreign investment? Environmental and Resource Economics, 21(1), 1–22.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Piyaphan Changwatchai .

Editor information

Editors and Affiliations

Annex

Annex

Table 3 Lists of home countries and host countries
Table 4 Results of multicollinearity test
Table 5 Result of Hausman test

Rights and permissions

Reprints and permissions

Copyright information

© 2016 Springer International Publishing Switzerland

About this paper

Cite this paper

Changwatchai, P. (2016). The Determinants of Foreign Direct Investment Under Climate Change. In: Bilgin, M., Danis, H. (eds) Entrepreneurship, Business and Economics - Vol. 2. Eurasian Studies in Business and Economics, vol 3/2. Springer, Cham. https://doi.org/10.1007/978-3-319-27573-4_24

Download citation

Publish with us

Policies and ethics