2014•Science Technology and IndustryRequires access

FDI,Economic Growth and Industrial Pollution——EKC test based on data of Anhui province during 1993—2012

Cai Xu-fen

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Abstract

Based on co-integration theory,Granger causality test and EKC hypothesis,this paper analyzes the environmental risk behind utilization of FDI for economic development in Anhui Province.The results show that:whether in long-term or short-term,while the impact of FDI on the discharge of industrial wastewater is not obvious,FDI causes a significant increase in industrial emissions and industrial solid waste,which depends largely on the industrial distribution of FDI in Anhui Province.Furthermore,there is no strict inverted U EKC in Anhui Province,industrial emissions and industrial solid waste fail to reduce with the economic growth,and relationship between industrial wastewater discharge and economic growth presents a U+inverted U type because of the productive curb.Finally,inflow of foreign capital making Anhui Province more lasting in the rising segment of EKC.

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What this paper is about

Based on co-integration theory,Granger causality test and EKC hypothesis,this paper analyzes the environmental risk behind utilization of FDI for economic development in Anhui Province.The results show that:whether in long-term or short-term,while the impact of FDI on the discharge of industrial wastewater is not obvious,FDI causes a significant increase in industrial emissions and industrial solid waste,which depends largely on the industrial distribution of FDI in Anhui Province.Furthermore,there is no strict inverted U EKC in Anhui Province,industrial emissions and industrial solid waste fail to reduce with the economic growth,and relationship between industrial wastewater discharge and economic growth presents a U+inverted U type because of the productive curb.Finally,inflow of foreign capital making Anhui Province more lasting in the rising segment of EKC.

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Available abstract

Based on co-integration theory,Granger causality test and EKC hypothesis,this paper analyzes the environmental risk behind utilization of FDI for economic development in Anhui Province.The results show that:whether in long-term or short-term,while the impact of FDI on the discharge of industrial wastewater is not obvious,FDI causes a significant increase in industrial emissions and industrial solid waste,which depends largely on the industrial distribution of FDI in Anhui Province.Furthermore,there is no strict inverted U EKC in Anhui Province,industrial emissions and industrial solid waste fail to reduce with the economic growth,and relationship between industrial wastewater discharge and economic growth presents a U+inverted U type because of the productive curb.Finally,inflow of foreign capital making Anhui Province more lasting in the rising segment of EKC.

Key concepts: Foreign direct investment, Granger causality, Inflow, Pollution, Municipal solid waste, Environmental pollution, Economics, Industrial wastewater treatment

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FDI,Economic Growth and Industrial Pollution——EKC test based on data of Anhui province during 1993—2012 — Research Paper | ScholarLens