Author(s)

• Catherine Co
• John A List

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Cited by*: 47 Downloads*: 13

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Abstract

This paper employs a conditional logit model to estimate the effects of state environmental regulations on foreign multinational corporations' new plant location decisions from 1986 to 1993. The relationship between site choice and state environmental regulations is explored, using four measures of regulatory stringency. We find evidence that heterogeneous environmental policies across states do matter.