Table 1.

Model (a) variables, measurements and sources

Variable typesVariableMeasureSource
Independent variableFDIFDI from home country A to host country BUNCTAD
Dependent variablesCRBClimate Risk Index of host country BGermanwatch
DClimate Risk Distance, Climate Risk Index of host country B minus Climate Risk Index of home country AGermanwatch
D1 (Climate Risk Index of host country B is lower)Climate Risk Distance (Climate Risk Index of host country B is lower)Germanwatch
D2 (Climate Risk Index of host country B is higher)Climate Risk Distance (Climate Risk Index of host country B is higher)Germanwatch
Control variablesGDPNatural logarithm of host country B’s GDPIMF
ADISTA comprehensive index of whether the two countries formerly had colonial relations, the proportion of people who speak the same language and have the same religion, and whether they share a legal system. The larger the index, the greater the distanceBerry et al. (2010) 
GDISTGeographical distance between the political centers of the two countries (km)CEPII
COMEWhether the ethnic origins of the two countries are the same (it is 1 if they are same, otherwise it is 0)CEPII
HDIAn index that comprehensively measures GDP per capita, education and life expectancy per capita. From low to high (0–100)United Nations
EFIAn index reflecting the degree of freedom of a country’s fiscal, trade and monetary policies. Not free to free (0–100)Heritage Foundation

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