Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/197011
Authors: 
Zheng, Jiajia
Sheng, Pengfei
Year of Publication: 
2017
Citation: 
[Journal:] Economies [ISSN:] 2227-7099 [Volume:] 5 [Year:] 2017 [Issue:] 1 [Pages:] 1-15
Abstract: 
Foreign direct investment (FDI) may have a positive effect on the level of pollution in host countries, as described by the pollution haven hypothesis (PHH). However, this kind of effect may depend on the economic conditions in host countries. In this study, we conduct research on the FDI's effect on China's CO2 emissions during the market-oriented reform. The results are as follows. Firstly, FDI directly promotes China's CO2 emissions. Secondly, with market-oriented reform, this positive effect from FDI is lowering year by year, which indicates that the market-oriented reform could alleviate the positive effect of FDI on China's CO2 emissions. Thirdly, as China's market-oriented reform was implemented gradually from experimental zones to the whole country, regional market development is uneven, and as such so is FDI's effect on local CO2 emissions. Provinces in the eastern area generally evidenced higher market development and lower CO2 emissions from FDI, while four provinces in west area evidenced both lower market development and higher CO2 emissions from FDI.
Subjects: 
FDI
market-oriented reform
CO2 emissions per capita
CO2 emission intensity
JEL: 
F18
F64
Q53
Q55
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
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