scholarly journals The Impact of Heterogeneous Environmental Regulations on Location Choices of Pollution-Intensive Firms in China

2021 ◽  
Vol 9 ◽  
Author(s):  
Chenghui Tang ◽  
Jianmin Dou
Keyword(s):  
Sustainable Development ◽  
Negative Binomial ◽  
Negative Impact ◽  
Environmental Regulations ◽  
Foreign Firms ◽  
Pollution Haven Hypothesis ◽  
Location Choices ◽  
Firm Level ◽  
Pollution Haven ◽  
The Impact

The spatial transfer pattern and dynamic mechanisms of pollution-intensive industries are key issues for national and regional sustainable development. Although previous studies have emphasized the impact of environmental regulations on the transfer of pollution industries, there is a lack of firm-level analysis of the combined effects of different types of environmental regulations and other factors on them, which has led to the pollution haven hypothesis remaining contested. In order to provide micro evidence to test the pollution haven hypothesis, this paper reveals the temporal and spatial evolution of pollution-intensive foreign firms’ distribution in China, and explores the impact of heterogeneous environmental regulations on the location choices by using spatial analysis and zero-inflated negative binomial regression. The empirical results were as follows: Firstly, pollution-intensive foreign firms were highly concentrated in the eastern developed region and have a strong path dependency in China. Secondly, environmental regulations, especially the market-based environmental regulation, had a significant negative impact on the location choices of pollution-intensive foreign firms. Thirdly, the spatial distribution of pollution-intensive foreign firms was strongly influenced by new economic and geographic factors. Fourthly, pollution-intensive foreign firms have a significant pollution border effects in developed regions but not in economically less-developed regions due to transportation costs. The governments are expected to adopt heterogeneous environmental regulations based on the level of regional economic development to avoid the pollution haven phenomenon, thus achieving a sustainable development.

Is a Corruption Crackdown Really Good for the Economy? Firm-Level Evidence from China

2020 ◽  
Author(s):  
Zhiyuan Chen ◽  
Xin Jin ◽  
Xu Xu
Keyword(s):  
Negative Impact ◽  
Foreign Firms ◽  
Private Firms ◽  
Firm Level ◽  
Personal Connections ◽  
Before And After ◽  
Short Run ◽  
The Government ◽  
Negative Impacts ◽  
The Impact

Abstract We study the impact of anticorruption efforts on firm performance, exploiting an unanticipated corruption crackdown in China’s Heilongjiang province in 2004. We compare firms in the affected regions with those in other inland regions before and after the crackdown. Our main finding is an overall negative impact of the crackdown on firm productivity and entry rates. Furthermore, these negative impacts are mainly experienced by private and foreign firms, while state-owned firms are mostly unaffected. We present evidence concerning two potential explanations for our findings. First, the corruption crackdown may have limited bribery opportunities that helped private firms operate. Second, the corruption crackdown may have interfered with personal connections between private firms and government officials to a greater extent than institutional connections between state-owned firms and the government. Overall, our findings suggest that corruption crackdowns may not restore efficiency in the economy, but instead lead to worse economic outcomes, at least in the short run (JEL L2, M1, O1).

scholarly journals Green Economy and Sustainable Development: The Economic Impact of Innovation on Employment

2018 ◽  
Vol 10 (10) ◽  
pp. 3541 ◽  
Author(s):  
Luigi Aldieri ◽  
Concetto Vinci
Keyword(s):  
Sustainable Development ◽  
Negative Impact ◽  
Knowledge Diffusion ◽  
Economic Incentives ◽  
Policy Implications ◽  
Green Economy ◽  
Job Displacement ◽  
Firm Level ◽  
Displacement Effect ◽  
The Impact

The purpose of this paper is to analyze the role of the knowledge diffusion process in employment effects of sustainable development investments for large international firms. We present an empirical analysis based upon a dataset composed of worldwide Research and Development (R&D) -intensive firms over the period 2002–2010. In order to identify the technological relatedness measure between the firms, we use the friendly environmental patents’ distribution. The drivers of labor innovation effects are identified as a complex combination of job displacement and compensation forces of innovation. Two research questions are investigated: first, we wonder whether green economy investments stimulate firm-level jobs within three different environmental contexts: water, waste and energy; second, we would like to learn the extent to which the knowledge diffusion is an important channel supporting labor in the environmental context, by analysing the impact of intra-industry externalities. From the empirical results, we can observe that environmental spillovers have a negative impact, by confirming the prevalence of the displacement effect. This finding is extremely important for policy implications. Indeed, not only economic incentives to allow the transition to cleaner technologies are required, but also stronger actions to favor job creation relative to environmental activities are needed for a full sustainable achievement of firms.

scholarly journals Environmental Regulations, Competition and Divestment of Foreign Direct Investment: Evidence from China

2021 ◽  
Author(s):  
Lufeng Tai ◽  
Linnan Yan
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Negative Impact ◽  
Environmental Regulations ◽  
Foreign Firms ◽  
Mechanism Analysis ◽  
Firm Level ◽  
Foreign Companies ◽  
Empirical Significance ◽  
Exit Probability

Abstract This paper is concerned with whether the Chinese increasingly stringent environmental regulations (ER) lead to the divestment of foreign direct investment (FDI). Based on industrial firm-level panel data from 2003 to 2010, our results show that the stricter ER do not induce the divestment of FDI but rather reduce the probability of foreign firms’ withdrawal from China. Moreover, in cities with a higher degree of marketization, the ER have greatly reduced the exit probability of foreign firms. The mechanism analysis shows that due to the scale and technological advantages of foreign companies, the ER have stimulated innovation, increased the market share and profits of foreign companies. However, the ER have a greater negative impact on domestic firms’ performance. This research has theoretical and empirical significance for the economic development and environmental protection of developing countries.

Do environmental regulations affect FDI decisions? The pollution haven hypothesis revisited

2020 ◽  
Author(s):  
Haeyeon Yoon ◽  
Almas Heshmati
Keyword(s):  
Home Country ◽  
Manufacturing Sector ◽  
Environmental Regulations ◽  
Pollution Haven Hypothesis ◽  
Outward Fdi ◽  
Host Countries ◽  
Pollution Haven ◽  
Production Stages ◽  
The Impact ◽  
Production Part

Abstract This study attempts to verify the pollution haven hypothesis by investigating the impact of environmental regulations on foreign direct investment (FDI). It uses Korean outward FDI data covering the manufacturing sector for the period 2009–15. This study not only considers the stringency when measuring the degree of the host country’s environmental regulations but also the enforcement of these environmental regulations. Since the pollution haven’s effects indicate moving the polluting production stages from the home country to other (host) countries, we differentiate between investments in the ‘production’ part from those in the non-production part using location information about the host country. The main results of a FDI’s model estimation show that the stricter the regulations in host countries in Asia, the lower the FDI both intensively and extensively in these countries. This supports the prevalence of the effects of a pollution haven. However, before we separate FDI into the production and non-production parts, the effects of environmental regulations on FDI are hindered by FDI in the non-production part. The results indicate that while environmental regulations are determinants of FDI in the production part, they do not have a significant effect on FDI decisions when the entire FDI is considered.

The Impact of the Business Environment on the Formalization of Informal Firms. The Case of Kosovo

Südosteuropa ◽  
2020 ◽  
Vol 68 (4) ◽  
pp. 505-529
Author(s):  
Kujtim Zylfijaj ◽  
Dimitar Nikoloski ◽  
Nadine Tournois
Keyword(s):  
Negative Impact ◽  
Positive Impact ◽  
Business Environment ◽  
Positive Influence ◽  
Policy Implications ◽  
Tax Reforms ◽  
Firm Level ◽  
Characteristics Analysis ◽  
Significant Negative Impact ◽  
The Impact

AbstractThe research presented here investigates the impact of the business environment on the formalization of informal firms, using firm-level data for 243 informal firms in Kosovo. The findings indicate that business-environment variables such as limited access to financing, the cost of financing, the unavailability of subsidies, tax rates, and corruption have a significant negative impact on the formalization of informal firms. In addition, firm-level characteristics analysis suggests that the age of the firm also exercises a significant negative impact, whereas sales volume exerts a significant positive impact on the formalization of informal firms. These findings have important policy implications and suggest that the abolition of barriers preventing access to financing, as well as tax reforms and a consistent struggle against corruption may have a positive influence on the formalization of informal firms. On the other hand, firm owners should consider formalization to be a means to help them have greater opportunities for survival and growth.

scholarly journals Times of change in complex environments - Evaluating hospital co-payments in Palestine refugee camps

2020 ◽  
Vol 30 (Supplement_5) ◽  
Author(s):  
S V Valente de Almeida ◽  
H Ghattas ◽  
G Paolucci ◽  
A Seita
Keyword(s):  
Length Of Stay ◽  
Policy Change ◽  
Negative Binomial ◽  
Negative Impact ◽  
Average Length ◽  
Lessons Learned ◽  
Policy Impact ◽  
Average Length Of Stay ◽  
Ex Post ◽  
The Impact

Abstract We measure the impact introducing a of 10% co-payment component on hospitalisation costs for Palestine refugees from Lebanon in public and private hospitals. This ex-post analysis provides a detailed insight on the direction and magnitude of the policy impact in terms of demand and supply for healthcare. The data was collected by the United Nations Relief and Works Agency for Palestine Refugees in the Near East and include episode level information from all public, private and Red Crescent Hospitals in Lebanon, between April 2016 and October 2017. This is a complete population episode level dataset with information from before and after the policy change. We use multinomial logit, negative binomial and linear models to estimate the policy impact on demand by type of hospital, average length of stay and treatment costs for the patient and the provider. After the new policy was implemented patients were 18% more likely to choose a (free-of-charge) PRCS hospital for secondary care, instead of a Private or Public hospital, where the co-payment was introduced. This impact was stronger for episodes with longer stays, which are also the more severe and more expensive cases. Average length of stay decreased in general for all hospitals and we could not find a statistically significant impact on costs for the provider nor the patient. We find evidence that the introduction of co-payments is hospital costs led to a shift in demand, but it is not clear to what extent the hospitals receiving this demand shift were prepared for having more patients than before, also because these are typically of less quality then the others. Regarding costs, there is no evidence that the provider managed to contain costs with the new policy, as the demand adapted to the changes. Our findings provide important information on hospitalisation expenses and the consequences of a policy change from a lessons learned perspective that should be taken into account for future policy decision making. Key messages We show that in a context of poverty, the introduction of payment for specific hospital types can be efficient for shifting demand, but has doubtable impact on costs containment for the provider. The co-payment policy can have a negative impact on patients' health since after its implementation demand increased at free-of-charge hospitals, which typically have less resources to treat patients.

ENERGY IN A MODEL OF FIRM ENTRY

2018 ◽  
Vol 24 (2) ◽  
pp. 231-254
Author(s):  
Soma Patra
Keyword(s):  
Negative Impact ◽  
The United States ◽  
Energy Price ◽  
Firm Entry ◽  
Energy Prices ◽  
Dsge Model ◽  
Price Shocks ◽  
Firm Level ◽  
Dynamic Stochastic ◽  
The Impact

Nine out of the last ten recessions in the United States have been preceded by an increase in the price of oil as noted by Hamilton [Palgrave Dictionary of Economics]. Given the small share of energy in gross domestic product this phenomenon is difficult to explain using standard models. In this paper, I show that firm entry can be an important transmission and amplifying channel for energy price shocks. The results from the baseline dynamic stochastic general equilibrium (DSGE) model predict a drop in output that is two times the impact in a model without entry. The model also predicts an increase in energy prices would lead to a decline in real wages, investment, consumption, and return on investment. Additionally, using US firm level data, I demonstrate that a rise in energy prices has a negative impact on firm entry as predicted by the DSGE model. This lends further support toward endogenizing firm entry when analyzing the effects of energy price shocks.

scholarly journals THE IMPACT OF TAX GAPS ON THE FINANCIAL AND ECONOMIC SECURITY OF THE COUNTRY

2021 ◽  
Author(s):  
Inna Tiutiunyk ◽  
Julia Belous
Keyword(s):  
Sustainable Development ◽  
Economic Development ◽  
Tax Evasion ◽  
Negative Impact ◽  
Economic Security ◽  
Financial Policy ◽  
Important Place ◽  
Complex Concept ◽  
Tax Revenues ◽  
The Impact

Trends in the development of the main components of financial and economic security of the country indicate their significant variability and dependence on a combination of internal and external factors. An important place among the drivers of influence on the level of financial and economic security is occupied by tax revenues. Given the prolonged national and transnational market turbulence, which is observed in most sectors of the economy, one of the biggest threats to the financial and economic security of most countries is the presence of a significant volume of shadow operations. The consequences of their implementation are the lack of tax revenues in the budget and the reduction of the country's financial viability in financing economic development programs. The purpose of the article is to study the impact of tax gaps on the level of financial and economic security of the country. In the paper, the essence of the financial and economic security of the country, which is proposed to be understood as a complex concept, integrates the features of economic and financial development of the economic system. Based on the systematization of scientific literatures, the main tasks and functions of financial and economic security of the country including realization of goals and objectives of financial policy and formation of favorable conditions for economically sustainable development and growth, highlights the characteristics of this concept are substantiated. The paper identifies three characteristic features of the financial and economic security of the country: as an indicator of its ability to protect the interests of society in a volatile external and internal environment; economically sustainable development and growth; leveling threats to the internal and external environment. The role of tax gaps in reducing the level of financial and economic security of the country is substantiated, the probability of formation of tax gaps in the economy is predicted, measures to minimize tax evasion as components of increasing its financial and economic security are proposed. The established interdependencies should serve as a basis for the transformation of state economic and financial policy in Ukraine in terms of minimizing the negative impact of the shadow sector of the economy on the indicators of economic development of the state.

scholarly journals The Environmental Aspect in the Concept of Corporate Social Responsibility in the Energy Industry and Sustainable Development of the Economy

Energies ◽  
2021 ◽  
Vol 14 (18) ◽  
pp. 5993
Author(s):  
Katarzyna Huk ◽  
Mateusz Kurowski
Keyword(s):  
Sustainable Development ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Negative Impact ◽  
Iso 14001 ◽  
Energy Industry ◽  
Environmental Aspect ◽  
The World ◽  
Corporate Social ◽  
The Impact

Sustainable development is now an important direction for the further development of all economies in the world. It is important to balance economic development with the impact on the environment and our planet. Another direction in the development of management sciences is the emergence of the concept of Corporate Social Responsibility, which considers this impact in three key aspects—economic, environmental and social—in terms of microeconomics. This concept gives companies specific guidelines and tools that minimize their negative impact on the environment. Reducing the negative impact of companies influences the environment and this is what is mainly associated with them. However, companies should also pay attention to internal consistency and caring for employees. Company practices such as the exploitation of people, including children, and injustice in the workplace are some of the factors that can be observed in less developed countries. The article focuses on the presentation of the environmental aspect in the context of the concept of corporate social responsibility. We analyzed individual sectors of the economy in terms of the environmental aspect, with particular emphasis on the energy industry. The study is based on a statistical analysis taking into account data from 1718 companies from all over the world. The aim of the article is to present the environmental aspect in the context of corporate social responsibility in the energy industry as a direction for sustainable development of the economy. The article is based on the analysis of the literature and databases presenting CSR, which was created on the basis of questionnaire research. The article shows which regions of the world are worse and which are better in terms of the environmental aspects of CSR. Conclusions on the main CSR guidelines for the environment are also presented. We analyzed factors such as environmental routines, policies and targets, implementation of environmental management systems, ISO 14001/EMAS certification, environmental reporting, environmental requirements inside the supply chain, the trend of GHG emissions and the trend of energy consumption for their environmental impact. The analysis was carried out on the basis of given regions of the world and individual sectors of the economy, especially the energy industry.

scholarly journals IMPACT OF TRADE OPENNESS ON ENVIRONMENT IN CHINA

2020 ◽  
Vol 21 (4) ◽  
pp. 1185-1202 ◽  
Author(s):  
Wen Jun ◽  
Hamid Mahmood ◽  
Muhammad Zakaria
Keyword(s):  
Carbon Emission ◽  
Trade Openness ◽  
Wavelet Coherence ◽  
Coherence Analysis ◽  
Pollution Haven Hypothesis ◽  
Causality Test ◽  
Pollution Haven ◽  
Analysis Phase ◽  
The Impact ◽  
Wavelet Coherence Analysis

The study investigates the impact of trade openness on pollution in China by applying wavelet-coherence analysis, phase-difference technique and Breitung and Candelon (2006) causality test. The estimated results provide some dynamic association between trade openness and pollutant variables. The results indicate that trade openness has increased pollution in China especially after 2001 when China became member of WTO. It suggests that “pollution haven hypothesis” exists in China. These results imply that trade openness has increased exports which has increased domestic production by increasing the scale of industries, which in turn has increased pollution in the country. The findings of spectral domain causality test show that trade openness causes carbon emission both in short, medium and long runs. It indicates that trade openness forecast carbon emissions in China. The results suggest that China should take suitable measures while following trade openness policy to avoid pollution.

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