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dc.titleHow Do Investment Promotion Policies Affect Sustainability?
dc.contributor.authorCarballo, Jerónimo
dc.contributor.authorMarra de Artiñano, Ignacio
dc.contributor.authorSztajerowska, Monika
dc.contributor.authorVolpe Martincus, Christian
dc.contributor.orgunitProductivity, Trade and Innovation Sector
dc.contributor.orgunitTrade and Investment Division
dc.date.available2023-12-12T00:12:00
dc.date.issue2023-12-12T00:12:00
dc.description.abstractSustainability has become an imperative. Understanding the effects of countries policies thereon has therefore acquired vital importance. This is particularly the case with ubiquitous policies such as investment promotion. In this paper, we address this timely policy question from an environmental perspective. We examine whether and how investment promotion policies affect Latin American economies emissions of pollutants. To do so, we create and use a unique dataset that combines data on multinational firms location, investment promotion agencies (IPAs) assistance, and pollutant-specific emission intensities across countries and sectors over time. Our analysis yields three main findings. First, multinational firms operating in Latin America have higher emission intensities than those located in Europe and that this is primarily driven by their sectoral distribution. Second, IPA client portfolios are biased toward more polluting multinational firms and this is mainly associated with the type of sectors targeted by the IPAs. Third, while on average the effects of IPA assistance are similar across multinational firms with different pollution levels, these are stronger on more polluting ones within priority sectors. These findings highlight the need and relevance of data-based evidence to uncover potential tensions and balance different economic and sustainability goals.
dc.format.extent51
dc.identifier.doihttp://dx.doi.org/10.18235/0005352
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/How-Do-Investment-Promotion-Policies-Affect-Sustainability.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectIntra-Regional Trade
dc.subjectSmall Business
dc.subjectForeign Direct Investment
dc.subjectEconomy
dc.subjectInternational Trade
dc.subjectSustainability
dc.subjectInternational Trade Policy
dc.subjectInvestment Promotion Agency
dc.subjectInvestment Promotion Policy
dc.subjectTrade and Investment Promotion
dc.subject.jelcodeF23 - Multinational Firms • International Business
dc.subject.jelcodeF14 - Empirical Studies of Trade
dc.subject.jelcodeF13 - Trade Policy • International Trade Organizations
dc.subject.jelcodeL23 - Organization of Production
dc.subject.jelcodeL25 - Firm Performance: Size, Diversification, and Scope
dc.subject.jelcodeL52 - Industrial Policy • Sectoral Planning Methods
dc.subject.jelcodeO25 - Industrial Policy
dc.subject.keywordsInvestment Promotion;Multinational Production;Sustainability
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01560
idb.operationRG-E1717
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