Abstract
This study discusses the relationship between sustainable development and (foreign direct investment) FDI inflows in the context of India. The objective is to explore the impact of environmental performance in attracting FDI on the sub-national level in India by drawing on institutional theory. We chose the context of India, because India is an emerging market that faces the pollution dilemma while attracting 3% of global FDI projects. The country has heterogeneity in its state policies as well other inter-state differences that create complex environment dynamics and distinct institutional pressures legitimizing environmental practices. We propose that states with implemented environmental policies receive more FDI. Furthermore, we propose that the capacity to change and the resistance to change within each state have a bearing on the amount of FDI received by it. This study adds nuance to the international business literature by exploring the importance of sustainable development at the sub-national level and by accounting for the differences in urban governance. Additionally, we create context for policy makers to enable improved targeting of FDI policies. By proposing a sub-national institutional theory which leans heavily on the regulatory pillar, we add theoretical value and contribute to theory on the sub-national level.
Presenters
Magdalena Viktora JonesDoctoral Candidate , International Business, Florida International University, Florida, United States Sumit Kundu
Professor and Associate Dean, International Business, Florida International University, Florida, United States Jennifer Oetzel
Professor, Management , American University, District of Columbia, United States Niti Bhasin
Professor, Commerce, Department of Commerce, Delhi School of Economics, University of Delhi, Delhi, India
Details
Presentation Type
Paper Presentation in a Themed Session
Theme
Technical, Political, and Social Responses
KEYWORDS
Sustainable Development, Environmental Performance, Foreign Direct Investment, Sub-National Context, India
