Growth, Foreign Direct Investment and the Environment: Evidence From Chinese Cities
AbstractIn 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 two industrial water pollution indicators (wastewater 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 output of domestic and foreign owned firms increases several pollutants in a statistically significant manner while output of firms from Hong Kong, Macao and Taiwan either reduces pollution or is statistically insignificant.
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Bibliographic InfoPaper provided by Department of Economics, University of Birmingham in its series Discussion Papers with number 09-15.
Length: 28 pages
Date of creation: Nov 2009
Date of revision:
FDI; economic growth; pollution; cities;
Other versions of this item:
- Matthew A. Cole & Robert J.R. Elliott & Jing Zhang, 2011. "Growth, Foreign Direct Investment, And The Environment: Evidence From Chinese Cities," Journal of Regional Science, Wiley Blackwell, vol. 51(1), pages 121-138, 02.
- Cole, Matthew A. & Elliott, Robert J.R. & Zhang, Jing, 2009. "Growth, Foreign Direct Investment and the Environment: Evidence from Chinese Cities," Proceedings of the German Development Economics Conference, Frankfurt a.M. 2009 41, Verein für Socialpolitik, Research Committee Development Economics.
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
- R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-12-05 (All new papers)
- NEP-DEV-2009-12-05 (Development)
- NEP-ENV-2009-12-05 (Environmental Economics)
- NEP-FDG-2009-12-05 (Financial Development & Growth)
- NEP-TRA-2009-12-05 (Transition Economics)
- NEP-URE-2009-12-05 (Urban & Real Estate Economics)
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