@article{122,
  author = {Rema Hanna},
  title = {U.S. Environmental Regulation and FDI: Evidence from a Panel of US-Based Multinational Firms},
  abstract = {This paper measures the response of US-based multinationals to the Clean Air Act Amendments (CAAA). Using a panel of firm-level data over the period 1966 – 1999, I estimate the effect of regulation on a multinational’s foreign production decisions. The CAAA induced substantial variation in the degree of regulation faced by firms, allowing for the estimation of econometric models that control for firm-specific characteristics and industrial trends. I find that the CAAA caused regulated multinational firms to increase their foreign assets by 5.3 percent and their foreign output by 9 percent. Heavily regulated firms did not disproportionately increase foreign investment in developing countries.
},
  year = {2010},
  journal = {American Economic Journal: Applied Economics },
  volume = {2},
  pages = {158-189},
}