FDI and the Environment: Evidence from China

Danny Tan Wang*, Flora Fang Gu

*Corresponding author for this work

Research output: Contribution to conferenceConference paperpeer-review

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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 languageEnglish
Publication statusPublished - Jun 2009
EventAcademy of International Business 2009 Annual Meeting - San Diego, United States
Duration: 27 Jun 200930 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

ConferenceAcademy of International Business 2009 Annual Meeting
Country/TerritoryUnited States
CitySan Diego
Period27/06/0930/06/09
OtherIs the World Flat or Spiky? Implications for International Business
Internet address

User-Defined Keywords

  • foreign direct investment
  • institutional development
  • environment
  • China

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