Paper

Paper Name    The Impact of Foreign Direct Investment on Environmental Pollution in China: Corruption Matters
Author    Shi Wang, Hua Wang(通讯作者), Qian Sun
Publication/Completion Time    2020-09-05
Magazine Name    Int. J. Environ. Res. Public Health (SCI/SSCI)
Vol   
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Paper description    This research investigates the interaction effect between corruption and foreign direct investment (FDI) on environmental pollution by applying the spatial econometric model to the panel data of China’s 29 provinces from 1994 to 2015 and analyzes the differences between China’s eastern, central and western regions. Results show that (a) FDI inflow deteriorates the environmental quality, validating the pollution haven hypothesis (PHH); (b) by weakening the environmental standards, corruption enables the inflow of low-quality FDI, weakens the spillover effect of FDI and indirectly causes further environmental pollution; (c) the interaction effect between corruption and FDI on environmental pollution is less significant in the eastern region than in the central and western regions.