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Foreign direct investment and sustainable development in the European Union

Author

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  • Sanja Franc

    (Faculty of Economics and Business, University of Zagreb)

Abstract

The aim of this paper is to analyze how foreign direct investment can impact sustainable development, particularly from an environmental standpoint. Pursuing that aim, the structure and flows of foreign direct investment are analyzed, along with the environmental protection regulation and its evolution over the last few decades in European Union (EU) countries. The conclusion of the research is that most EU countries have strong environmental requirements that can influence investors seeking pollution havens in these countries. However, while common EU policies are in place, member countries also apply their own national regulations and incentives. Different approaches to investments and sustainable development policies may have implications for the level of harmonization and collaboration among EU countries in the future.

Suggested Citation

  • Sanja Franc, 2015. "Foreign direct investment and sustainable development in the European Union," Notitia - journal for economic, business and social issues, Notitia Ltd., vol. 1(1), pages 117-133, December.
    • Handle: RePEc:noa:journl:y:2015:i:1:p:117-133
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    File URL: http://www.notitia.hr/RePEc/noa/journl/09_2015.pdf
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    References listed on IDEAS

    as
    1. Böhringer, Christoph & Fischer, Carolyn & Rosendahl, Knut Einar, 2014. "Cost-effective unilateral climate policy design: Size matters," Journal of Environmental Economics and Management, Elsevier, vol. 67(3), pages 318-339.
    2. Carolyn Fischer & Alan K. Fox, 2007. "Output-Based Allocation of Emissions Permits for Mitigating Tax and Trade Interactions," Land Economics, University of Wisconsin Press, vol. 83(4), pages 575-599.
    3. Alistair Ulph & Laura Valentini, 2001. "Is Environmental Dumping Greater when Plants are Footloose?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(4), pages 673-688, December.
    4. Francesca Sanna-Randaccio & Roberta Sestini, 2011. "Foreign Direct Investment and Environmental Policy: Have Location Factors Been Neglected?," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 18(1), pages 45-60.
    5. repec:bla:scandj:v:103:y:2001:i:4:p:673-88 is not listed on IDEAS
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    More about this item

    Keywords

    FDI; European Union; sustainable development; environmental protection;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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