Abstract
The issue of how foreign direct investments (FDI) affect a host country’s environment has generated much debate yet less convergence in the literature. Using panel data for 287 Chinese cities over the period of 20022005, the paper aims to examine (1) if FDI produces a net impact on SO2 emission, and (2) how institutional development of the host setting varies the strength of the relationship. The results show that FDI do harm the environment by generating more pollution. However, institutional development cushions this negative impact. Building on the institution-based theory, this study sheds new light on the long debated relationship between FDI, institutions, and the environment of host countries. Policy implications are discussed.
| Original language | English |
|---|---|
| Publication status | Published - Jun 2009 |
| Event | Academy of International Business 2009 Annual Meeting - San Diego, United States Duration: 27 Jun 2009 → 30 Jun 2009 https://www.aib.world/about/history/past-conferences/past-annual-meetings/#2009 (Conference website) https://www.aib.world/wp-content/uploads/2019/04/Program-2009-San-Diego.pdf (Conference programme) https://www.aib.world/wp-content/uploads/2019/04/Proceedings-2009-San-Diego.pdf (Conference proceedings) |
Conference
| Conference | Academy of International Business 2009 Annual Meeting |
|---|---|
| Country/Territory | United States |
| City | San Diego |
| Period | 27/06/09 → 30/06/09 |
| Other | Is the World Flat or Spiky? Implications for International Business |
| Internet address |
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User-Defined Keywords
- foreign direct investment
- institutional development
- environment
- China
