Title of article
ENVIRONMENTAL REGULATORY STRINGENCY, CORRUPTION, AND FDI: NEW EVIDENCE FROM A PANEL OF COUNTRIES
Author/Authors
Ridzuan, Sulhi Universiti Kebangsaan Malaysia - School of Economics, Faculty of Economics and Management, Malaysia , Sarmidi, Tamat Universiti Kebangsaan Malaysia - School of Economics, Faculty of Economics and Management, Malaysia , Nor, Abu Hassan Shaari Mohd Universiti Kebangsaan Malaysia - School of Economics, Faculty of Economics and Management, Malaysia
From page
1
To page
14
Abstract
Previous literatures on both studies of pollution haven and FDI-corruption nexus have produced inconclusive results. This study uses Generalized Method of Moments (GMM) to address potential endogeneity of independent variables and country-specific effects issues when assessing the relationship between foreign direct investment (FDI), stringency of environmental regulations and corruption. FDI inflows are found to be discouraged by stricter environmental regulations and high level of corruption will induce FDI. Surprisingly, we find new evidence that both effects are changed after each of them exceeds threshold levels. Countries have to pass the threshold levels in order to gain positive impact of both stricter regulations and low level of corruption.
Keywords
FDI , pollution haven , corruption , developing countries , developed countries.
Journal title
Journal of Techno-Social
Journal title
Journal of Techno-Social
Record number
2578769
Link To Document