This study analyzed the effects of lax environmental laws on foreign direct investment (FDI) inflows to developing countries (case study). The Lax environmental laws in developing countries may attract polluting FDI that usually escapes from stringent environmental laws in other countries. This hypothesis is examined in multiple regression data model for the time period 1982-2013. The results of estimation reject the hypothesis for four countries (Mexico, India, China and Brazil). The conclusion of this study may be essential in order to solve the ongoing dilemma of how to promote FDI inflows without leading to environmental degradation.