Foreign Direct Investment, Pollution, and the Environmental Quality: A Model with Empirical Evidence From the Chinese Regions

Yanqing Jiang

The International Trade Journal, 2015, vol. 29, issue 3, 212-227

Abstract: In this study, within the framework of the Environmental Kuznets Curve (EKC), we empirically investigate the effects of regional openness to foreign direct investment (FDI) and regional economic growth on pollution emission across the Chinese provinces. Our analysis shows FDI contributes to more serious pollution emission, where the effect of the former on the latter is realized through the former's impacts on the input of natural resources or the industry mix, either of which is associated with the level of total factor productivity. Our analysis also shows that with the continuous growth of output and per capita output, pollution emission and pollution emission intensity would both first rise and then fall, which lends support to the EKC hypothesis.

Date: 2015
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DOI: 10.1080/08853908.2014.1001538

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