Does green foreign investment contribute to air pollution abatement? Evidence from China

Bo Yuan and Qiuyue Yin

Journal of International Development, 2024, vol. 36, issue 2, 912-938

Abstract: To better balance economic growth and environmental protection, China is encouraging green foreign direct investment (FDI), but the environmental impact remains unclear. Our study examines the environmental impact of green FDI at small spatial scales using a unique dataset. Results show that green FDI significantly alleviates local air pollution. This effect is more pronounced in the vicinity of green FDI enterprises' sites and decays as the distance increases. Also, it is more salient in areas where local governments highlight environmental protection. Heterogeneous analysis finds that the effect is more significant for enterprises that are small‐scale, sole‐venture or in manufacturing industries.

Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1002/jid.3846

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:wly:jintdv:v:36:y:2024:i:2:p:912-938

Access Statistics for this article

Journal of International Development is currently edited by Paul Mosley and Hazel Johnson

More articles in Journal of International Development from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().