Comparative Environmental Regulation and Foreign Investment Inflows: Is China a Pollution Haven?
Maoliang Bu (),
ChinTe Lin and
A chapter in Globalization and the Environment of China, 2014, vol. 14, pp 1-20 from Emerald Publishing Ltd
Abstract This paper investigates how relative environmental regulation influences the flow of foreign direct investment (FDI), and thereby assesses the pollution haven hypothesis (PHH). In this field, conflicting results exist, partly due to the mere consideration of absolute environmental regulation or the inadequate consideration of endogeneity. Concerning these, we study China’s inward FDI from 26 developed countries and 12 developing countries over 1996–2009, and collect four different environmental regulation indicators at relative values of CO2, SO2, PM10, and an environmental regulation index. Using an instrumental variable approach, we find strong PHH evidence no matter for the subsample of FDI from developed countries or the one from developing countries. Moreover, we show how such results can be masked if failing to consider the endogeneity.
Keywords: Pollution haven hypothesis; endogeneity; comparative environmental regulation; inward FDI; China; F18; Q53; Q56 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://www.emeraldinsight.com/10.1108/S1574-871520 ... RePEc&WT.mc_id=RePEc (text/html)
Access to full text is restricted to subscribers
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eme:fegpzz:s1574-871520140000014001
Ordering information: This item can be ordered from
Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
http://www.emeraldgr ... ies.htm?id=1574-8715
Access Statistics for this chapter
More chapters in Frontiers of Economics and Globalization from Emerald Publishing Ltd
Bibliographic data for series maintained by Charlotte Maiorana ().