Growth, Foreign Direct Investment and the Environment: Evidence from Chinese Cities

Matthew Cole, Robert Elliott () and Jing Zhang

No 41, Proceedings of the German Development Economics Conference, Frankfurt a.M. 2009 from Verein für Socialpolitik, Research Committee Development Economics

Abstract: In this paper we investigate the relationship between economic growth and industrial pollution emissions in China using data for 112 major cities between 2001 and 2004. Using disaggregated data we separate FDI inflows from Hong Kong, Macao and Taiwan from those of other foreign economies. We examine four industrial water pollution indicators (wastewater, chemical oxygen demand, hexavalent chromium compounds, and petroleum-like matter) and four industrial air pollution indicators (waste gas, sulphur dioxide, soot and dust). Our results suggest that most air and water emissions rise with increases in economic growth at current income levels. The share of total output produced by firms from Hong Kong, Macao and Taiwan has a positive effect on emissions although this effect is only significant for three industrial water pollution emissions. The share of total output produced by firms from other foreign economies can be beneficial, detrimental or neutral, depending on the pollutants considered.

Keywords: FDI; economic growth; pollution; cities (search for similar items in EconPapers)
JEL-codes: F23 O13 O18 O53 Q25 R1 (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/39919/1/41_zhang.pdf (application/pdf)

Related works:
Journal Article: GROWTH, FOREIGN DIRECT INVESTMENT, AND THE ENVIRONMENT: EVIDENCE FROM CHINESE CITIES (2011)
Working Paper: Growth, Foreign Direct Investment and the Environment: Evidence From Chinese Cities (2009)
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:zbw:gdec09:41

Access Statistics for this paper

More papers in Proceedings of the German Development Economics Conference, Frankfurt a.M. 2009 from Verein für Socialpolitik, Research Committee Development Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().