Search results

This paper aims to conduct a comparative study between the historical development of corporate social responsibility (CSR) in both the USA and China. It is motivated by the phenomenon that CSR is developing in two different directions (global vs local).

A comparative study on sustainability-linked compensation illustrates how CSR in the USA is driven by firm-level economic decisions, in which the manifestations of CSR are usually those which prove to be the most profitable financially. Moreover, a case analysis on the green bond market in China contrarily illustrates how CSR in China is usually based more on alignment with top-down, state-led initiatives in which the state directs the ways in which CSR is manifested.

This paper reveals that despite globalizing trends are attempting to unify definitions of CSR, they inevitably become localized to fit the societal needs in which they are located.

By understanding how CSR development in these two countries has changed over time, this paper shows that future developments in CSR will likely be influenced more by local practices than by converging global forces.

This paper tests the pollution haven hypothesis by examining the relationship between environmental regulation and foreign investment with consideration of the role of corporate social responsibility, which has so far been neglected. Using multinationals’ investment data from China, our results in general support the pollution haven hypothesis that less stringent environmental regulation is more attractive for multinationals to invest in China, but high social responsibility can counteract attractiveness of weak environmental regulation.

The central debate on pollution havens concerns whether the level of environmental regulation in developing countries influences foreign investment location decisions. Most empirical studies are based on aggregate data, while micro-level evidence is relatively lacking in the literature. To fill this research gap, this paper tests for the existence of intracountry pollution havens in China by estimating the determinants of foreign investment flows based on a large firm-level panel dataset. Evidence from this study supports the existence of pollution havens within China in certain industries. However, the sensitivity of foreign investment to environmental regulation varies significantly across industries with different pollution characteristics. Furthermore, when the impact of government subsidies on foreign investment is accounted for, the results show that subsidies can compensate for pollution treatment costs in provinces with stricter environmental regulation.

Sustainable development is a central issue for the world economy today. The United Nation’s Sustainable Development Goals (SDGs) are associated with both responsible business practices and strategic orientation for competitive advantages. While most multinational enterprises (MNEs) want to ensure that their businesses will maintain or even enhance sustainability across borders, they face enormous challenges, often due to a lack of capabilities and inefficient institutions in host countries. In the nexus between the SDGs and international business (IB) research, the contexts of emerging markets and developing countries have particular significance, because they impose complex constraints on the achievement of the SDGs. At the same time, there is a high potential for MNEs to have positive effects internationally through their sustainable practices. This chapter discusses the recent trend in IB research on sustainability by showcasing current issues addressing several interrelated SDGs. The exemplary topics touch upon child labor, innovation for social sustainability, challenges in the green transition, MNE activities associated with the pollution haven, and health and safety concerns in global supply chains. The discussion cuts across various contextual settings and calls for actions by all stakeholders, including business entities, governments, and scholars.

The critical issue in the debate over the pollution haven hypothesis (PHH) is whether the location choice of international investment is influenced by the stringency of environmental regulation. So far previous empirical studies focused on the outward investment from developed countries, while little work has been done on the issue from developing countries. To fill the gap, this paper selects data from China enterprises, using a Logit estimation to determine whether there is a pollution haven effect in the location choice of developing countries’ outward investment. Our results show that Chinese enterprises are attracted by countries with lax environmental regulations; resource-intensive enterprises from China are more sensitive to the stringency of regulation than are technology-intensive enterprises. We contribute to the literature in two ways. First, we provide new evidence in support of the PHH by analyzing investment from developing countries. Further, we show that differences exist in the FDI behavior between resource-intensive and technology-intensive enterprises. Based on this finding, we explain why some previous studies have not found robust evidence of the PHH.

This paper aims to investigate the effect of rural-urban income gap on agricultural growth in China and its dynamics over time and across regions since reform and opening up.

Two types of indices are constructed to measure the rural-urban income gap: the intra-provincial index and the inter-provincial index. A provincial panel data from 1978 to 2010 and growth accounting method are used to estimate the size of the adverse effect of rural-urban income gap on agricultural growth in China.

The empirical results show that both indices of rural-urban income gaps are negatively associated with agriculture output, but the inter-provincial rural-urban income gap produces a larger adverse effect than the intra-provincial rural-urban income gap. Growth accounting analysis further shows that such adverse effects are decreasing over time and are larger in the central provinces. The results represent resource diversion effects of rural-urban income gap on agriculture.

This paper bridges the gap in existing literature on the relationship between sectoral income gaps and agricultural growth, which confirms Schultz's argument that agricultural activities are efficient even in developing countries and the rural resources diverted out by income gap are not surplus. The results imply that equalized rural-urban and regional policies are required to maintain sustainable agricultural growth in China.

This paper investigates how relative environmental regulation influences the flow of foreign direct investment (FDI), and thereby assesses the pollution haven hypothesis (PHH). In this field, conflicting results exist, partly due to the mere consideration of absolute environmental regulation or the inadequate consideration of endogeneity. Concerning these, we study China’s inward FDI from 26 developed countries and 12 developing countries over 1996–2009, and collect four different environmental regulation indicators at relative values of CO₂, SO₂, PM10, and an environmental regulation index. Using an instrumental variable approach, we find strong PHH evidence no matter for the subsample of FDI from developed countries or the one from developing countries. Moreover, we show how such results can be masked if failing to consider the endogeneity.

The issue of environmental regulation and productivity has received increasing attention among academics, but little research has focused on Chinese firms despite the serious state of pollution in China. This study aimed to fill that gap. Analyzing a sample of firms from 12 Chinese cities, we found that environmental regulation could improve firm productivity, but the responses to environmental regulation differed across industry sectors, firm sizes, and locations. In this paper, we discuss the implications of these responses toward the environmental policy in China.