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Foreign Direct Investments and the Environmental Kuznets Curve: New Evidence from Chinese Provinces

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  • Xiaoping He
  • Xin Yao

Abstract

By employing a panel smooth transition regression (PSTR), this article analyzes the impacts of economic growth and foreign direct investment (FDI) on air pollutant emissions. The results reveal the regime-switching effects in the income-pollution relationship as well. Specifically, an inverted-U shape is found in the relationship between per capita income and two air pollutant emissions, soot and dust, which confirms the environmental Kuznets curve (EKC) hypothesis. Significant influence of FDI on EKC relationships is found, which provides the evidence that the pollution haven hypothesis holds to some extent.

Suggested Citation

  • Xiaoping He & Xin Yao, 2017. "Foreign Direct Investments and the Environmental Kuznets Curve: New Evidence from Chinese Provinces," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 53(1), pages 12-25, January.
    • Handle: RePEc:mes:emfitr:v:53:y:2017:i:1:p:12-25
    DOI: 10.1080/1540496X.2016.1138813
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    2. Wang, Huiqing & Wei, Weixian, 2020. "Coordinating technological progress and environmental regulation in CO2 mitigation: The optimal levels for OECD countries & emerging economies," Energy Economics, Elsevier, vol. 87(C).
    3. Anping Chen & Nicolaas Groenewold, 2019. "Macroeconomic shocks in China: Do the distributional effects depend on the regional source?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(1), pages 69-97, February.
    4. Uddin, Mirza Md Moyen & Sharif, Taimur & Islam, Abe Reza Mohammad & Abedin, Mohammad Zoynul, 2024. "Moderating impact of FDI on the growth-environment nexus in the pre-COVID-19 eras," Research in International Business and Finance, Elsevier, vol. 67(PA).
    5. Eduardo Polloni-Silva & Diogo Ferraz & Flávia de Castro Camioto & Daisy Aparecida do Nascimento Rebelatto & Herick Fernando Moralles, 2021. "Environmental Kuznets Curve and the Pollution-Halo/Haven Hypotheses: An Investigation in Brazilian Municipalities," Sustainability, MDPI, vol. 13(8), pages 1-19, April.
    6. Claire Brunel & Arik Levinson, 2021. "Globalization and Greenhouse Gas Emissions: Evidence from the United States," NBER Working Papers 28372, National Bureau of Economic Research, Inc.
    7. Béchir Ben Lahouel & Younes Ben Zaied & Guo-liang Yang & Maria-Giuseppina Bruna & Yaoyao Song, 2022. "A non-parametric decomposition of the environmental performance-income relationship: evidence from a non-linear model," Annals of Operations Research, Springer, vol. 313(1), pages 525-558, June.
    8. Roxana Pincheira & Felipe Zuniga, 2021. "Environmental Kuznets curve bibliographic map: a systematic literature review," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(S1), pages 1931-1956, April.
    9. Yuyi Chen & Yunong Li & Jie Yan, 2019. "Tracing Air Pollutant Emissions in China: Structural Decomposition and GVC Accounting," Sustainability, MDPI, vol. 11(9), pages 1-21, May.
    10. Amina Andreichyk & Pavel Tsvetkov, 2023. "Study of the Relationship between Economic Growth and Greenhouse Gas Emissions of the Shanghai Cooperation Organization Countries on the Basis of the Environmental Kuznets Curve," Resources, MDPI, vol. 12(7), pages 1-20, July.

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