Re-examination of "Pollution Haven" or "Pollution Halo" Effect on Foreign Direct Investment —Evidence from “Two Control Zones” Policy in China

DOI

10.2991/febm-19.2019.1How to use a DOI?

Keywords

two control zones; pollution haven effect; foreign direct investment; difference-in-differences estimation

Abstract

Based on panel data of prefecture-level cities from 1996 to 2017, taking account of the exogenous shock of the “Two Control Zones” (TCZ) policy, this paper investigates empirically the impact of environmental policy on Foreign Direct Investment (FDI) by using the methods of difference-in-differences (DID) and Propensity score matching method (PSM-DID). The results show that the implementation of the environmental policy does inhibit FDI and verifies the existence of "pollution haven" effect in China for a long time. While strengthening the opening up and actively introducing foreign capital, Chinese governments must keep the bottom line of environmental regulations to ensure the quality of FDI.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Jianxia Yu
PY  - 2019/12
DA  - 2019/12
TI  - Re-examination of "Pollution Haven" or "Pollution Halo" Effect on Foreign Direct Investment —Evidence from “Two Control Zones” Policy in China
BT  - Proceedings of the Fourth International Conference on Economic and Business Management (FEBM 2019)
PB  - Atlantis Press
SP  - 306
EP  - 310
SN  - 2352-5428
UR  - https://doi.org/10.2991/febm-19.2019.1
DO  - 10.2991/febm-19.2019.1
ID  - Yu2019/12
ER  -