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Environmental Impact of Foreign Direct Investment toward Host Countries

In: Globalization and the Environment of China

Author

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  • Boqiong Yang
  • Jun Yang
  • Qiran Zhao

Abstract

Accompany with the development of economy, the environment becomes deteriorating, especially in developing countries. Many studies found that foreign direct investment (FDI) with the effect of technology spillover would be one of the best ways to solve the environmental problem. By using the model of trade theory distinguishing between environmental and productive technology and separately analyzing the technology spillover effect of these two technologies on reducing environmental pollution in host countries, we find that the pollution problem could be worse if more intensive pollution industrial structure is induced by the environmental technology development. Naturally, this did not mean restraining the development of technology, but rather emphasizing the importance of the regulation and the industrial structure.

Suggested Citation

  • Boqiong Yang & Jun Yang & Qiran Zhao, 2014. "Environmental Impact of Foreign Direct Investment toward Host Countries," Frontiers of Economics and Globalization, in: Globalization and the Environment of China, volume 14, pages 21-43, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:fegzzz:s1574-871520140000014002
    DOI: 10.1108/S1574-871520140000014002
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    Citations

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    Cited by:

    1. Migliavacca, Milena & Patel, Ritesh & Paltrinieri, Andrea & Goodell, John W., 2022. "Mapping impact investing: A bibliometric analysis," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 81(C).

    More about this item

    Keywords

    Foreign direct investment (FDI); host country; technology spillover; 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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