Capital outflows and the environment: fresh evidence from M&A purchases and greenfield FDI.

We analyze how the mergers and acquisitions (M&As) and greenfield foreign direct investment (GFDI) outflows impact the host countries' air pollution at the sectoral level. Following the recent advent of multinationals from emerging economies, we examine outflows rather than inflows. Evidence indicates that there are important distinctive effects of FDI mode of exit.