The influence of ESG policies on FDI : A global perspective
*I. Ifra FathimaCorresponding authorifrahfathima93@gmail.comDepartment of CommerceB. S. Abdur Rahman Crescent Institute of Science and TechnologyVandalur, Chennai, 600048, India0000-0003-3197-824XView full profile → , Indumathi Natarajanindumathi@crescent.educationDepartment of CommerceB. S. Abdur Rahman Crescent Institute of Science and TechnologyVandalur, Chennai, 600048, IndiaView full profile → , Krupa B Nairkrupa@rajagiri.eduDepartment of Business AdministrationRajagiri P. O, KalamasseryRajagiri College of Social Sciences (Autonomous)Cochin, Kerala, 683104, IndiaView full profile →
* Corresponding author · click or hover a name for details
- Received:
- 05 Feb 2025
- Published Online:
- 29 Nov 2025
- Article type:
- Research Article
- Language:
- EN
- Article no.:
- JIOS-2059
- Pages:
- 2445–2456
Abstract
Keywords
Subject Classifications
References
[1] J. H. Dunning, Multinational enterprises and the global economy. Cheltenham: Edward Elgar (2008).
[2] S. Bannour and N. A. Abdelkawy, “Sovereign ESG and foreign direct investment in the GCC: The amplifying role of trade openness in economic diversification,” Sustainability, vol. 16, pp. 9326 (2024), doi: 10.3390/su16219326.
[3] J. Chen, “The relationships among ESG, FDI, and economic growth in CEE countries,” Master’s thesis, Charles University, Faculty of Social Sciences (2023).
[4] A. Kohli, R. Wadhwa, and G. C. Tripathi, “Sustainable finance from foreign actors into renewable energy and economic growth: An Indian perspective,” J. Stat. Manag. Syst., vol. 26, no. 5, pp. 1015–1028 (2023), doi: 10.47974/JSMS-1154.
[5] J. Zhan and H. Mirza, “GVC transformation and a new investment landscape in the 2020s: Driving forces, directions, and a forward-looking research and policy agenda,” J. Int. Bus. Policy, vol. 4, no. 2, pp. 206–220 (2021).
[6] K. Kang, “Political determinants of corporate investments: Evidence from broadband deployment,” J. Public Econ., vol. 208, pp. 104637 (2023).
[7] L. Lannutti, “The role of environmental, social, and governance (ESG) regulations in attracting foreign direct investment (FDI),” in IISES International Academic Conference, Vienna (2024). doi: 10.20472/IAC.2024.062.005.
[8] L. Chen, Q. Zhang, and X. Li, “The role of intellectual capital in promoting FDI inflows across different economic contexts,” J. Sustain. Dev., vol. 31, no. 4, pp. 55–72 (2023), doi: 10.1007/s10668-023-02921-x.
[9] R. Bhatia, N. K. Bhasin, S. Kadyan, and P. Singh, “Environmental, social, governance (ESG) and sustainable finance: Emergence of new era of investing,” J. Inf. Optim. Sci., vol. 44, no. 8, pp. 1543–1562 (2023), doi: 10.47974/JIOS-1475.
[10] K. Narula, “‘Sustainable investing’ via the FDI route for sustainable development,” Procedia - Soc. Behav. Sci., vol. 37, pp. 15–30 (2012), doi: 10.1016/j.sbspro.2012.03.271.
[11] H. J. Van Norel, “Evaluating sovereign ESG performance as a determinant for attracting foreign direct investments in a COVID-19 context,” Master’s thesis, Erasmus University Rotterdam (2023).
[12] World Bank, “World Bank country and lending groups.” (2022). [Online]. Available: https://datahelpdesk.worldbank.org/knowledgebase/articles/906519
[13] The Economist Group, “Sustainability initiatives and FDI: A policy analysis.” (2021).
[14] S. Hofbauer and K. Limanskis, “Sustainability practices of German firms investing abroad: Evidence from Latvia,” J. Int. Bus. Stud., vol. 53, no. 2, pp. 321–345 (2022).
[15] N. Chipalkatti, Q. V. Le, and M. Rishi, “Sustainability and society: Do environmental, social, and governance factors matter for foreign direct investment?,” Energies, vol. 14, no. 19, pp. 6039 (2021), doi: 10.3390/en14196039.
[16] A. Cuervo-Cazurra, Y. Luo, R. Ramamurti, and S. H. Ang, “The impact of the home country on internationalization,” J. World Bus., vol. 53, no. 5, pp. 593–604 (2018).
[17] Y. Su, J. Liu, and W. Chen, “The paradox of ESG performance in attracting sustainable FDI,” J. Int. Bus. Stud., vol. 52, no. 8, pp. 1485–1502 (2021), doi: 10.1057/s41267-021-00418-6.
[18] S. Pathak, S. S. Shrotri, S. Fazalbhoy, and S. Bagchi, “A study on the sustainable strategies adopted by Corporates and its impact on profitability and market value,” J. Inf. Optim. Sci., vol. 45, no. 6, pp. 1757–1785 (2024), doi: 10.47974/JIOS-1763.
[19] Abu Dhabi Bank, “Governance reforms and FDI attraction: Evidence from emerging economies,” Emerg. Mark. Rev., vol. 54, no. 2, pp. 101–115 (2023).
