Research on the Heterogeneity Threshold Effect of Foreign Direct Investment and Corporate Social Responsibility on Haze Pollution

Zhanjie Wang, Yongfeng Ma, Shasha Wang () and Yongjian Wang ()
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Zhanjie Wang: School of Business Administration, Guizhou University of Finance and Economics, Guiyang 550025, China
Yongfeng Ma: School of Business Administration, Guizhou University of Finance and Economics, Guiyang 550025, China
Shasha Wang: Graduate School, Guizhou University of Finance and Economics, Guiyang 550025, China
Yongjian Wang: Business School, Jiangsu Normal University, Xuzhou 221116, China

IJERPH, 2023, vol. 20, issue 6, 1-14

Abstract: Carrying out environmental protection and governance in the process of using foreign capital to develop the economy is a realistic problem that China needs to solve urgently. In order to reduce environmental pollution, all enterprises are called upon by the local government to fulfil CSR and improve the quality of FDI use. However, previous studies have rarely explored the threshold effect of FDI and CSR on haze pollution. This paper employs the threshold effect model to explore the above problem based on panel data of 30 provinces in China from 2009 to 2018. The empirical study found the following: (1) FDI has a significantly positive double-threshold effect on haze pollution. Meanwhile, the promotion effect of FDI on haze pollution is the strongest in the two threshold ranges. (2) CSR has a significantly negative single-threshold effect on haze pollution; that is, the increase in CSR intensity inhibits haze pollution. Such a negative effect shows the characteristics of increasing marginal efficiency. (3) In addition, the provinces in different thresholds display obvious geographical distribution characteristics. Through the above analysis, it can be observed that FDI and CSR have distinct impacts on haze pollution. Thus, the country and the government can reduce haze pollution by improving the investment structure, using environmentally friendly technology, guiding enterprises to abide by business ethics and promoting social responsibilities fulfilment.

Keywords: foreign direct investment; corporate social responsibility; haze pollution; threshold effect; heterogeneity analysis; fixed-effect model (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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