Revisiting the Relationship Between the Strength of Environmental Regulation and Foreign Direct Investment

Interest in sustainability is increasing, and research on ESG management continues. The first issue to be discussed in the present situation is the environment. The study between the environment and internationalization was conducted around two conflicting arguments. First, the pollution haven hypot...

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Main Authors: Moon Gyu Bae, Yi Chen Wang, Na Liu
Format: Article
Language:English
Published: Frontiers Media S.A. 2022-05-01
Series:Frontiers in Psychology
Subjects:
Online Access:https://www.frontiersin.org/articles/10.3389/fpsyg.2022.899918/full
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author Moon Gyu Bae
Yi Chen Wang
Na Liu
author_facet Moon Gyu Bae
Yi Chen Wang
Na Liu
author_sort Moon Gyu Bae
collection DOAJ
description Interest in sustainability is increasing, and research on ESG management continues. The first issue to be discussed in the present situation is the environment. The study between the environment and internationalization was conducted around two conflicting arguments. First, the pollution haven hypothesis states that multinational corporations move to countries with looser regulations depending on environmental regulation. Next is the Porter Hypothesis, which argues that well-designed environmental regulations offset the cost of compliance and ultimately help firms gain a competitive advantage through innovation that enhances performance. However, the two arguments have not yet reached a consensus conclusion. In addition, studies on the national level and studies considering the distance between countries, an important factor in international management, are lacking. This manuscript aims to revisit the relationship between the strength of environmental regulation and foreign direct investment (FDI) in the context of increasing environmental concerns. Differences between countries are an important field of international management, but research on environmental regulations is lacking. The purpose of this study is to examine the relationship between existing environmental regulations and FDI and to discuss how the distance between countries can affect existing theories.
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spelling doaj.art-e8e4b23536a14ee1bd2c84e56309cc052022-12-22T00:40:01ZengFrontiers Media S.A.Frontiers in Psychology1664-10782022-05-011310.3389/fpsyg.2022.899918899918Revisiting the Relationship Between the Strength of Environmental Regulation and Foreign Direct InvestmentMoon Gyu Bae0Yi Chen Wang1Na Liu2Institute of Management and Economy Research, Yeungnam University, Gyeongsan, South KoreaSchool of Business, Guangdong Polytechnic of Science and Technology, Guangzhou, ChinaDepartment of International Business and Economics, Yeungnam University, Gyeongsan, South KoreaInterest in sustainability is increasing, and research on ESG management continues. The first issue to be discussed in the present situation is the environment. The study between the environment and internationalization was conducted around two conflicting arguments. First, the pollution haven hypothesis states that multinational corporations move to countries with looser regulations depending on environmental regulation. Next is the Porter Hypothesis, which argues that well-designed environmental regulations offset the cost of compliance and ultimately help firms gain a competitive advantage through innovation that enhances performance. However, the two arguments have not yet reached a consensus conclusion. In addition, studies on the national level and studies considering the distance between countries, an important factor in international management, are lacking. This manuscript aims to revisit the relationship between the strength of environmental regulation and foreign direct investment (FDI) in the context of increasing environmental concerns. Differences between countries are an important field of international management, but research on environmental regulations is lacking. The purpose of this study is to examine the relationship between existing environmental regulations and FDI and to discuss how the distance between countries can affect existing theories.https://www.frontiersin.org/articles/10.3389/fpsyg.2022.899918/fullFDIenvironmental regulationcountry distanceESGpollution haven hypothesisporter hypothesis
spellingShingle Moon Gyu Bae
Yi Chen Wang
Na Liu
Revisiting the Relationship Between the Strength of Environmental Regulation and Foreign Direct Investment
Frontiers in Psychology
FDI
environmental regulation
country distance
ESG
pollution haven hypothesis
porter hypothesis
title Revisiting the Relationship Between the Strength of Environmental Regulation and Foreign Direct Investment
title_full Revisiting the Relationship Between the Strength of Environmental Regulation and Foreign Direct Investment
title_fullStr Revisiting the Relationship Between the Strength of Environmental Regulation and Foreign Direct Investment
title_full_unstemmed Revisiting the Relationship Between the Strength of Environmental Regulation and Foreign Direct Investment
title_short Revisiting the Relationship Between the Strength of Environmental Regulation and Foreign Direct Investment
title_sort revisiting the relationship between the strength of environmental regulation and foreign direct investment
topic FDI
environmental regulation
country distance
ESG
pollution haven hypothesis
porter hypothesis
url https://www.frontiersin.org/articles/10.3389/fpsyg.2022.899918/full
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AT yichenwang revisitingtherelationshipbetweenthestrengthofenvironmentalregulationandforeigndirectinvestment
AT naliu revisitingtherelationshipbetweenthestrengthofenvironmentalregulationandforeigndirectinvestment