Skip to main content

The effect of environmental regulation on the locational choice of Japanese foreign direct investment

Buy Article:

$53.17 plus tax (Refund Policy)


This article assesses the impact of environmental regulation (ER) in host countries on Japanese foreign direct investment (FDI) decision-making. It tests the pollution haven hypothesis using data on national (ER) standards and Japanese inward FDI in five dirty industries (iron and steel industry, nonferrous metals industry, chemicals industry, paper and pulp industry, nonmetallic products industry). The results do not support the pollution hypothesis. On the contrary, inward Japanese FDI appears to be attracted to countries which have committed themselves to a transparent and stable environment regulatory environment, suggesting that the quality of the regulatory framework in terms of its certainty and transparency has a greater influence on foreign investors' choice of location than the level of environmental regulatory measures.

Document Type: Research Article


Affiliations: 1: Institute for Development Policy and Management, School of Environment and Development, University of Manchester, UK 2: Department of Economics, University of Birmingham, UK

Publication date: June 1, 2008

More about this publication?

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Partial Open Access Content
Partial Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more