Affiliation:
1. School of Economics Nankai University Tianjin China
2. China Market Economy Research Center Beijing Normal University Beijing China
3. School of Economics and Resource Management Beijing Normal University Beijing China
Abstract
AbstractTo better balance economic growth and environmental protection, China is encouraging green foreign direct investment (FDI), but the environmental impact remains unclear. Our study examines the environmental impact of green FDI at small spatial scales using a unique dataset. Results show that green FDI significantly alleviates local air pollution. This effect is more pronounced in the vicinity of green FDI enterprises' sites and decays as the distance increases. Also, it is more salient in areas where local governments highlight environmental protection. Heterogeneous analysis finds that the effect is more significant for enterprises that are small‐scale, sole‐venture or in manufacturing industries.
Subject
Development,Geography, Planning and Development