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The Transnational Organization of Production and Environmental Degradation: A Cross‐National Study of the Effects of Foreign Capital Penetration on Water Pollution Intensity, 1980–1995

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  • Andrew K. Jorgenson

Abstract

Objective. This study attempts to increase our understanding of the environmental impacts of the transnational organization of production in the context of foreign capital penetration. Methods. With a sample of 53 countries, panel analyses using OLS and robust regression are conducted to assess the effects of foreign direct investment in the manufacturing sector on growth in organic water pollution intensity, 1980–1995. Slope‐dummy interaction variables are used to compare the effects in developed countries and less‐developed countries. The tested models include a variety of relevant controls, such as domestic investment, state environmentalism, size of the manufacturing sector, and level of economic development. Results. Findings for the analyses indicate that foreign direct investment in manufacturing positively affects growth in organic water pollution intensity in less‐developed countries, while the effect in developed countries is nonsignificant. Conclusions. This research illustrates the need for social scientists to investigate the environmental impacts of both the transnational organization of production and the overall scale of production in different sectors.

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  • Andrew K. Jorgenson, 2006. "The Transnational Organization of Production and Environmental Degradation: A Cross‐National Study of the Effects of Foreign Capital Penetration on Water Pollution Intensity, 1980–1995," Social Science Quarterly, Southwestern Social Science Association, vol. 87(3), pages 711-730, September.
    • Handle: RePEc:bla:socsci:v:87:y:2006:i:3:p:711-730
    DOI: 10.1111/j.1540-6237.2006.00405.x
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    1. World Bank, 2000. "World Development Indicators 2000," World Bank Publications - Books, The World Bank Group, number 13828, December.
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    1. Yunyun Wu & Xiaochun Li, 2021. "International factor mobility and environment in a dual agricultural economy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 66(1), pages 75-89, February.
    2. Huiming Xie & Xiaopeng Wang & Manhong Shen & Chu Wei, 2022. "Abatement costs of combatting industrial water pollution: convergence across Chinese provinces," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(9), pages 10752-10767, September.
    3. Jamie M Sommer, 2018. "Corrupt Actions and Forest Loss: A Cross-National Analysis," International Journal of Social Science Studies, Redfame publishing, vol. 6(10), pages 23-34, October.
    4. Wu, Yunyun & Li, Xiaochun, 2024. "Foreign investment and environment in developing countries: A perspective from agricultural subsidy with foreign capital taxation," International Review of Economics & Finance, Elsevier, vol. 89(PB), pages 286-298.

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