Environmental Impact of Foreign vs. Domestic Capital Investment in China☆Reprinted fromYang, Brosig, and Chen (2013). John Wiley & Sons, with kind permission from the publisher

Boqiong Yang, Stephan Brosig and Jianguo Chen

A chapter in Globalization and the Environment of China, 2014, vol. 14, pp 45-72 from Emerald Group Publishing Limited

Abstract: We compare environmental impacts associated with incoming foreign direct investment versus domestic capital in China. We use aggregate data on Chinese provinces’ economic and pollution indicators to explore the effects of the financial origin of fixed capital. Our simultaneous models consider three prime channels through which these effects work: economic scale, sectoral composition, and pollution intensity. Results show that emissions associated with foreign financed capital are lower than with domestically financed capital for some but not all of the considered types of pollution.

Keywords: Domestic capital; foreign direct investment (FDI); environmental impacts; pollution emission; F2; Q56; Q58 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:eme:fegzzz:s1574-871520140000014003

DOI: 10.1108/S1574-871520140000014003

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