ScholarLens Back to search
2008•Journal of International TradeRequires access

Foreign Direct Investment, Environmental Regulation and Environmental Pollution

Han Li-ya

Open publisher page 4 citations

Abstract

This paper constructs a simultaneous model to assess the effect of foreign direct investment (FDI) on the environment. The results show: in 1992-2006, FDI entry enlarged China’s industrial production scale, which increased pollution emission. At the same time, FDI entry also reduced pollution emission through optimizing economic structure and improving technology. As a result, the total effect of FDI on environment is small and positive. In addition, the weaker environmental regulation is one of the main factors attracting FDI, which indicates there is a pollution haven effect in China, but China wasn’t thepollution haven.

About this research paper

What this paper is about

This paper constructs a simultaneous model to assess the effect of foreign direct investment (FDI) on the environment. The results show: in 1992-2006, FDI entry enlarged China’s industrial production scale, which increased pollution emission. At the same time, FDI entry also reduced pollution emission through optimizing economic structure and improving technology. As a result, the total effect of FDI on environment is small and positive. In addition, the weaker environmental regulation is one of the main factors attracting FDI, which indicates there is a pollution haven effect in China, but China wasn’t thepollution haven.

Why it matters

OpenAlex reports 4 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

This paper constructs a simultaneous model to assess the effect of foreign direct investment (FDI) on the environment. The results show: in 1992-2006, FDI entry enlarged China’s industrial production scale, which increased pollution emission. At the same time, FDI entry also reduced pollution emission through optimizing economic structure and improving technology. As a result, the total effect of FDI on environment is small and positive. In addition, the weaker environmental regulation is one of the main factors attracting FDI, which indicates there is a pollution haven effect in China, but China wasn’t thepollution haven.

Key concepts: Foreign direct investment, Pollution haven hypothesis, Haven, China, Pollution, Environmental pollution, Environmental regulation, International economics

Related papers

Related paper 1Related paper 2Related paper 3
Back to paper searchBrowse research topicsOriginal source
Foreign Direct Investment, Environmental Regulation and Environmental Pollution — Research Paper | ScholarLens