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Africa Knows! It is time to decolonise minds

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Accepted Paper: D21-03. To panel D21.

Title of paper:

Authors:

Abel Ezeoha (Alex Ekwueme Federal University);

Chibuike Uche (Leiden University);

Augustine Ujunwa (University of Nigeria).

Short abstract paper:
Our paper shows that the strength of the home (rather than host) country institutions is capable of deterring foreign MNCs from a choice of environmental unfriendly modes of production; and for local MNCs, the quality of home country institutions and political patronage are greater influencer.

Long abstract paper:
By the proposition of the pollution heaven hypothesis, foreign MNCs operating in developing countries are greater emitters of CO2 than their local counterparts. They expectedly move their operations from countries of stringent regulations and institutional standards to those with weak institutional settings. Using the case of Dangote Cement and Lafarge Africa in Nigeria, the strength of the home (rather than host) country institutions is capable of deterring foreign MNCs from a choice of environmental unfriendly modes of production. For local MNCs, we find that the quality of home country institutions and political patronage play key role in their choice of modus of operations. In such institutionally weak jurisdictions like Nigeria, local MNCs think more in terms of finding cheaper rather than more environmentally friendly and sustainable ways of production. In doing this, they strategically engage in CSR activities that offer them government protections and shift public attention from their consequent negative externalities.

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