Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/247705 
Year of Publication: 
2021
Series/Report no.: 
Kiel Working Paper No. 2200
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
Improvements of firms' environmental performance crucially determine the speed of a country's green economic transformation. In this paper, we investigate whether firms with foreign ownership are more likely to adopt 'green' management practices, which determine the capability to monitor and improve a firm's impact on the environment. By using multi-country firm-level data, we show that foreign ownership increases the likelihood of implementing green management practices. Considering country heterogeneity, we reveal that only firms based in more developed economies and in countries with better environmental performance benefit from foreign direct investment, while this is not the case for firms based in less developed economies or countries with weak environmental performance. In addition, we find that the effect is more robust for manufacturing sector firms than for service sector firms. Overall, our results suggest that foreign ownership can contribute towards a country's green economic transformation.
Subjects: 
Foreign direct investment
Green/environmental management
Green economic transformation
Emerging markets
JEL: 
F21
F64
M10
Q56
Document Type: 
Working Paper

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