This paper tries to see the role of the actual expenditure on pollution and control equipment in a particular State on the location choice of foreign firms in India. Based on Levinson (2001), we compute Industry-adjusted pollution abatement expenditure index for 25 States for different time...

This paper attempts to examine the role of environmental governance on foreign direct investment by testing the pollution haven hypothesis for 21 Indian states for the period 2002–2010. To test for the hypothesis, this study computes an abatement expenditure index adjusted for industrial...