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Environmental Regulation and the Heterogeneity of Industrial Selection of Foreign Investment

In: Globalization and the Environment of China

Author

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  • Boqiong Yang
  • Xiaobing Wang
  • Jun Yang

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.

Suggested Citation

  • Boqiong Yang & Xiaobing Wang & Jun Yang, 2014. "Environmental Regulation and the Heterogeneity of Industrial Selection of Foreign Investment," Frontiers of Economics and Globalization, in: Globalization and the Environment of China, volume 14, pages 153-164, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:fegzzz:s1574-871520140000014007
    DOI: 10.1108/S1574-871520140000014007
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    More about this item

    Keywords

    Pollution-intensive industry; FDI (foreign direct investment); industrial structure; F18; F23; O13;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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