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Foreign Direct Investment, Pollution, and the Environmental Quality: A Model with Empirical Evidence From the Chinese Regions

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  • Yanqing Jiang

Abstract

In this study, within the framework of the Environmental Kuznets Curve (EKC), we empirically investigate the effects of regional openness to foreign direct investment (FDI) and regional economic growth on pollution emission across the Chinese provinces. Our analysis shows FDI contributes to more serious pollution emission, where the effect of the former on the latter is realized through the former's impacts on the input of natural resources or the industry mix, either of which is associated with the level of total factor productivity. Our analysis also shows that with the continuous growth of output and per capita output, pollution emission and pollution emission intensity would both first rise and then fall, which lends support to the EKC hypothesis.

Suggested Citation

  • Yanqing Jiang, 2015. "Foreign Direct Investment, Pollution, and the Environmental Quality: A Model with Empirical Evidence From the Chinese Regions," The International Trade Journal, Taylor & Francis Journals, vol. 29(3), pages 212-227, August.
    • Handle: RePEc:taf:uitjxx:v:29:y:2015:i:3:p:212-227
    DOI: 10.1080/08853908.2014.1001538
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    References listed on IDEAS

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    1. Linda Kleemann & Awudu Abdulai, 2013. "The Impact Of Trade And Economic Growth On The Environment: Revisiting The Cross‐Country Evidence," Journal of International Development, John Wiley & Sons, Ltd., vol. 25(2), pages 180-205, March.
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    3. Vangelis Tzouvelekas & Dimitra Vouvaki & Anastasios Xepapadeas, 2006. "Total Factor Productivity Growth and the Environment: A Case for Green Growth Accounting," Working Papers 0617, University of Crete, Department of Economics.
    4. Catherine Yap Co & Fanying Kong & Shuanglin Lin, 2008. "Pollution Across Chinese Provinces," Development Economics Working Papers 22148, East Asian Bureau of Economic Research.
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