Environmental Regulation and the Heterogeneity of Industrial Selection of Foreign Investment

Boqiong Yang, Xiaobing Wang and Jun Yang

A chapter in Globalization and the Environment of China, 2014, vol. 14, pp 153-164 from Emerald Group Publishing Limited

Abstract: The huge flow of foreign direct investment (FDI) in recent decades has prompted concern among policy-makers and researchers regarding its impact on the environment, as well as its contribution to China’s economic growth. In this study, by combining FDI and trade pollution theory, we establish a model to evaluate the impact of FDI on pollution, which facilitates testing the “pollution haven” hypothesis. Our results indicate that FDI is concentrated in pollution-intense industries. Moreover, it is necessary to undertake further research on FDI pollution with new data after environmental regulation.

Keywords: Pollution-intensive industry; FDI (foreign direct investment); industrial structure; F18; F23; O13 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:eme:fegzzz:s1574-871520140000014007

DOI: 10.1108/S1574-871520140000014007

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