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Environmental Impact of Foreign vs. Domestic Capital Investment in China☆Reprinted fromYang, Brosig, and Chen (2013). John Wiley & Sons, with kind permission from the publisher

In: Globalization and the Environment of China

Author

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  • Boqiong Yang
  • Stephan Brosig
  • Jianguo Chen

Abstract

We compare environmental impacts associated with incoming foreign direct investment versus domestic capital in China. We use aggregate data on Chinese provinces’ economic and pollution indicators to explore the effects of the financial origin of fixed capital. Our simultaneous models consider three prime channels through which these effects work: economic scale, sectoral composition, and pollution intensity. Results show that emissions associated with foreign financed capital are lower than with domestically financed capital for some but not all of the considered types of pollution.

Suggested Citation

  • Boqiong Yang & Stephan Brosig & Jianguo Chen, 2014. "Environmental Impact of Foreign vs. Domestic Capital Investment in China☆Reprinted fromYang, Brosig, and Chen (2013). John Wiley & Sons, with kind permission from the publisher," Frontiers of Economics and Globalization, in: Globalization and the Environment of China, volume 14, pages 45-72, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:fegzzz:s1574-871520140000014003
    DOI: 10.1108/S1574-871520140000014003
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    More about this item

    Keywords

    Domestic capital; foreign direct investment (FDI); environmental impacts; pollution emission; F2; Q56; Q58;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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