Foreign direct investment location decision and pollution: evidence from Malaysia

There is considerable development gap between regions in Malaysia. The objective of this paper is to examine the impact of regional environmental pollution condition on foreign direct invesbnent location decision across regions in Malaysia. In this study, several regional environmental variables ar...

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Main Authors: Abdul Hamid Jaafar, Md. Elias Hossain
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2007
Online Access:http://journalarticle.ukm.my/7840/
http://journalarticle.ukm.my/7840/1/1587-2986-1-SM.pdf
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author Abdul Hamid Jaafar,
Md. Elias Hossain,
author_facet Abdul Hamid Jaafar,
Md. Elias Hossain,
author_sort Abdul Hamid Jaafar,
building UKM Institutional Repository
collection Online Access
description There is considerable development gap between regions in Malaysia. The objective of this paper is to examine the impact of regional environmental pollution condition on foreign direct invesbnent location decision across regions in Malaysia. In this study, several regional environmental variables are included as determinants of foreign direct investment location decision. The study uses state level data from 1995 to 2004 on a random eflects panel regression model. Results ffom this study indicate that while positive economic circumstances attract foreign direct investment, negative environmental conditions, especially air pollution, serve as push factors. This finding suggests that local regions should improve their environmental condition in order to stand a better chance of attracting foreign as well as local investment.
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spelling oai:generic.eprints.org:78402016-12-14T06:45:23Z http://journalarticle.ukm.my/7840/ Foreign direct investment location decision and pollution: evidence from Malaysia Abdul Hamid Jaafar, Md. Elias Hossain, There is considerable development gap between regions in Malaysia. The objective of this paper is to examine the impact of regional environmental pollution condition on foreign direct invesbnent location decision across regions in Malaysia. In this study, several regional environmental variables are included as determinants of foreign direct investment location decision. The study uses state level data from 1995 to 2004 on a random eflects panel regression model. Results ffom this study indicate that while positive economic circumstances attract foreign direct investment, negative environmental conditions, especially air pollution, serve as push factors. This finding suggests that local regions should improve their environmental condition in order to stand a better chance of attracting foreign as well as local investment. Penerbit Universiti Kebangsaan Malaysia 2007 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/7840/1/1587-2986-1-SM.pdf Abdul Hamid Jaafar, and Md. Elias Hossain, (2007) Foreign direct investment location decision and pollution: evidence from Malaysia. Jurnal Ekonomi Malaysia, 41 . pp. 137-145. ISSN 0127-1962 http://www.ukm.my/penerbit/jem.htm
spellingShingle Abdul Hamid Jaafar,
Md. Elias Hossain,
Foreign direct investment location decision and pollution: evidence from Malaysia
title Foreign direct investment location decision and pollution: evidence from Malaysia
title_full Foreign direct investment location decision and pollution: evidence from Malaysia
title_fullStr Foreign direct investment location decision and pollution: evidence from Malaysia
title_full_unstemmed Foreign direct investment location decision and pollution: evidence from Malaysia
title_short Foreign direct investment location decision and pollution: evidence from Malaysia
title_sort foreign direct investment location decision and pollution: evidence from malaysia
url http://journalarticle.ukm.my/7840/
http://journalarticle.ukm.my/7840/
http://journalarticle.ukm.my/7840/1/1587-2986-1-SM.pdf