The impact of foreign direct investment (FDI) on China's manufacturing carbon emissions

Jinchao Yi, Yilin Hou and Zach Ziye Zhang

Innovation and Green Development, 2023, vol. 2, issue 4

Abstract: This paper investigates the impact of FDI on carbon emissions in China's manufacturing sector, using statistical data from 2003 to 2020 as a reference. To account for the heterogeneity of manufacturing industries, we classify them into three categories based on input factors: resource-intensive, technology-intensive, and labor-intensive. Our main findings are as follows: there is a negative correlation between FDI and CO2 emissions in manufacturing. Specifically, FDI has a positive effect on reducing carbon emissions in capital-intensive, technology-intensive, and labor-intensive manufacturing industries, with the strongest effect observed in labor-intensive industries. Foreign investment can contribute to improving energy efficiency in China's manufacturing sector, and there is potential for environmental regulation to further reduce carbon emissions in resource-intensive manufacturing. By analyzing the impact of FDI on carbon emissions in manufacturing and the role of manufacturing heterogeneity in carbon emissions, we aim to provide recommendations and strategies to help reduce the carbon footprint of manufacturing industries.

Keywords: Chinese manufacturing industry; Foreign direct investment (FDI); Carbon neutrality; Carbon emissions (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S2949753123000541
Open-access

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ingrde:v:2:y:2023:i:4:s2949753123000541

DOI: 10.1016/j.igd.2023.100086

Access Statistics for this article

Innovation and Green Development is currently edited by Hai-Jie Wang and Chun-Ping Chang

More articles in Innovation and Green Development from Elsevier
Bibliographic data for series maintained by Catherine Liu ().