Foreign direct investment and haze pollution: an empirical analysis based on provincial panel data

LENG Yanli1 XIAN Guoming2 DU Sizheng1

(1.School of Economics, Collaborative Innovation Center for China Economy, Nankai University)
(2.Center for Transnational Corporations, Nankai University )

【Abstract】Based on provincial panel data of China from 2001 to 2010, this paper examines the influence of foreign direct investment on haze pollution in China. The results show that: (1) foreign direct investment affects China's environmental quality through three mechanisms, namely, scale effect, growth effect and structure effect; the scale effect and structure effect are negative while the growth effect is positive. Generally, foreign direct investment has a positive effect on haze pollution; (2) there is a significant negative correlation between regional GDP and haze pollution, while coal consumption, motor vehicle use, trade openness, housing construction areas and industry structure are significantly and positively relevant to haze pollution, and the impact of human capital on haze pollution is not significant;(3) further analysis also suggests that the effect of foreign direct investment on haze pollution varies regionally. As a conclusion, in the process of the economic and social development, not only should the needs of economic and social development be considered but also the bearing capacity of environment and resources.

【Keywords】 foreign direct investment; environmental pollution; haze pollution;


【Funds】 Key project of National Social Science Foundation of China(15ZDA057); Key project of Key base of Humanities and social sciences of Ministry of Education(13JJD790017).

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(Translated by YI Ran)


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This Article


CN: 11-1692/F

Vol , No. 12, Pages 74-84

December 2015


Article Outline


  • Introduction
  • 1 An analysis based on the mechanism of FDI's environmental effect
  • 2 Methods of modeling and evaluation
  • 3 Empirical study and data analysis
  • 4 Conclusion and suggestions
  • References