The effect of service FDI on carbon productivity in China: a multidimensional heterogeneity perspective

Shuo Wang and Feng Yin

Applied Economics Letters, 2024, vol. 31, issue 7, 603-607

Abstract: Effect of foreign direct investment (FDI) in services on carbon productivity is examined based on Chinese province-level panel data from 2007 to 2019. We control for income level, technical level and sectoral differences and find (ⅰ) in the full sample, service FDI has no significant effect on carbon productivity; (ⅱ) the effect of income inequality: service FDI flowing into high-income regions benefits the environment, while flows to low-income regions do not support the pollution-halo effect; (ⅲ) the effect of technology inequality: service FDI in regions with high technology levels reduces the carbon emission, while the environmental effect of service FDI is insignificant in low-technology regions; (ⅳ) industrial heterogeneity: FDI inflows to different sectors show different sensitivities to income level and have different impacts on carbon productivity. The result has a strong policy implication which will be helpful for the local governments to make policies with the aim to maximize the benefit from the pollution-halo effect of service FDI.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13504851.2022.2140756 (text/html)
Access to full text is restricted to subscribers.

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:taf:apeclt:v:31:y:2024:i:7:p:603-607

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504851.2022.2140756

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().