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Download e-book for iPad: The Relationship Between FDI and the Natural Environment: by Pasquale Pazienza

By Pasquale Pazienza

ISBN-10: 3319043005

ISBN-13: 9783319043005

ISBN-10: 3319043013

ISBN-13: 9783319043012

This paintings examines extensive the connection among international direct funding and the surroundings. during the last few many years, expanding degrees of environmental degradation were recorded and feature been claimed to be relatively caused by globalization and the common bring up of monetary actions, specifically international direct investments (FDIs). besides the fact that, the environmental implications of FDIs are usually not simply pointed out and contradictory perspectives and arguments were awarded. This paintings contributes to the controversy through heavily studying the explicit literature produced during the last 3 a long time, and by means of proposing and discussing fresh developments and clients with reference to the FDI phenomenon.

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Extra resources for The Relationship Between FDI and the Natural Environment: Facts, Evidence and Prospects

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Furthermore, people working for governmental agencies involved in FDI attraction were unaware of environmental laws and norms. As a result, only two out of the 183 companies arriving in Costa Rica during that period operated under a formal environmental programme. 6 In the case of developing countries, which are very often characterized by the inexistence of environmental regulations, this phenomenon is better known as the ‘‘stuck at the bottom’’ effect to mean that because of the fear of losing competitiveness in FDI attraction, they would remain ‘‘stuck at the bottom’’ with minimum or no environmental regulations.

Further examples of investment flight regarding industries involved in heavy-polluting production sectors are reported in another study. In the late eighties, firms in the wet processing and tanning industry relocated their activities from Europe to Brazil, as well as a number of firms working in asbestos tiles and benzedrine dye manufacturing facilities, which relocated to Mexico and Romania (Gray 2002). The analysis of more recent literature seems to be more supportive of the thesis on the existence of pollution havens.

This theory, however, is characterized by some weaknesses which can be synthesized in two 3 The ‘‘pollution halos’’ phenomenon is also termed the ‘‘race to the top’’ phenomenon or the ‘‘California effect’’ (Gray 2002). The ‘‘California effect’’ takes its name from a specific case related to a virtuous circle which can be read in the history of American emissions standards. The Clean Air Act of 1970 gave to California—which chose this option—the possibility of undertaking stricter emission standards than those required for the rest of the US states.

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The Relationship Between FDI and the Natural Environment: Facts, Evidence and Prospects by Pasquale Pazienza


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