FDI and the Environment: Evidence from China

Danny Tan Wang; Flora Fang Gu

FDI and the Environment: Evidence from China

Danny Tan Wang^*
, Flora Fang Gu

^*Corresponding author for this work

Department of Management, Marketing and Information Systems

Research output: Contribution to conference › Conference paper › peer-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 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	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)

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 11 Sustainable Cities and Communities

User-Defined Keywords

foreign direct investment
institutional development
environment
China

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title = "FDI and the Environment: Evidence from China",

abstract = "The issue of how foreign direct investments (FDI) affect a host country{\textquoteright}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. ",

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TY - CONF

T1 - FDI and the Environment: Evidence from China

AU - Wang, Danny Tan

AU - Gu, Flora Fang

PY - 2009/6

Y1 - 2009/6

N2 - 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.

AB - 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.

KW - foreign direct investment

KW - institutional development

KW - environment

KW - China

M3 - Conference paper

T2 - Academy of International Business 2009 Annual Meeting

Y2 - 27 June 2009 through 30 June 2009

ER -

FDI and the Environment: Evidence from China

Abstract

Conference

UN SDGs

User-Defined Keywords

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