Evaluation of the triangle-relationship of industrial pollution, foreign direct investment, and economic growth in China’s transformation
Unlike previous research on foreign direct investment (FDI), economic growth, and pollution, this study focuses on investigating complex interactions specifically. A dynamic simultaneous equation model is adopted, together with the one-step systematic GMM, drawn upon to empirically analyze 30 Chines...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Frontiers Media S.A.
2023-04-01
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| Series: | Frontiers in Environmental Science |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fenvs.2023.1123068/full |
| _version_ | 1797852965876269056 |
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| author | Juanfeng Zhang Rui Han Zongjun Song Lihua Zhang |
| author_facet | Juanfeng Zhang Rui Han Zongjun Song Lihua Zhang |
| author_sort | Juanfeng Zhang |
| collection | DOAJ |
| description | Unlike previous research on foreign direct investment (FDI), economic growth, and pollution, this study focuses on investigating complex interactions specifically. A dynamic simultaneous equation model is adopted, together with the one-step systematic GMM, drawn upon to empirically analyze 30 Chinese provinces between 2006 and 2017. The results show that FDI does promote economic growth in China which, in turn, positively affects FDI. However, FDI inflow and economic growth both have negative environmental effects. A higher level of environmental pollution corresponds with FDI becoming more attractive. In the case of China, therefore, the pollution-haven hypothesis holds weight. Specifically, industrial environmental pollution is found to positively affect economic growth, indicating this growth to fall on the left side of the environmental Kuznets Curve. Accordingly, therefore, policymakers should look to optimize China’s industrial structure, guide the inflow of high-quality FDI, and promote healthy and sustainable development under the country’s new development philosophy. |
| first_indexed | 2024-04-09T19:41:47Z |
| format | Article |
| id | doaj.art-2585580243594ead8776aad1a88da461 |
| institution | Directory Open Access Journal |
| issn | 2296-665X |
| language | English |
| last_indexed | 2024-04-09T19:41:47Z |
| publishDate | 2023-04-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Environmental Science |
| spelling | doaj.art-2585580243594ead8776aad1a88da4612023-04-04T04:23:34ZengFrontiers Media S.A.Frontiers in Environmental Science2296-665X2023-04-011110.3389/fenvs.2023.11230681123068Evaluation of the triangle-relationship of industrial pollution, foreign direct investment, and economic growth in China’s transformationJuanfeng Zhang0Rui Han1Zongjun Song2Lihua Zhang3Department of Engineering Management, China Academy of Housing and Real Estate, Zhejiang University of Technology, Hangzhou, ChinaDepartment of Engineering Management, Institute of Real Estate Studies, Zhejiang University of Technology, Hangzhou, ChinaSchool of Management, Baise University, Baise, ChinaDepartment of Engineering Management, Institute of Real Estate Studies, Zhejiang University of Technology, Hangzhou, ChinaUnlike previous research on foreign direct investment (FDI), economic growth, and pollution, this study focuses on investigating complex interactions specifically. A dynamic simultaneous equation model is adopted, together with the one-step systematic GMM, drawn upon to empirically analyze 30 Chinese provinces between 2006 and 2017. The results show that FDI does promote economic growth in China which, in turn, positively affects FDI. However, FDI inflow and economic growth both have negative environmental effects. A higher level of environmental pollution corresponds with FDI becoming more attractive. In the case of China, therefore, the pollution-haven hypothesis holds weight. Specifically, industrial environmental pollution is found to positively affect economic growth, indicating this growth to fall on the left side of the environmental Kuznets Curve. Accordingly, therefore, policymakers should look to optimize China’s industrial structure, guide the inflow of high-quality FDI, and promote healthy and sustainable development under the country’s new development philosophy.https://www.frontiersin.org/articles/10.3389/fenvs.2023.1123068/fulltriangle-relationshipforeign direct investmentindustrial pollutioneconomic growthChina |
| spellingShingle | Juanfeng Zhang Rui Han Zongjun Song Lihua Zhang Evaluation of the triangle-relationship of industrial pollution, foreign direct investment, and economic growth in China’s transformation Frontiers in Environmental Science triangle-relationship foreign direct investment industrial pollution economic growth China |
| title | Evaluation of the triangle-relationship of industrial pollution, foreign direct investment, and economic growth in China’s transformation |
| title_full | Evaluation of the triangle-relationship of industrial pollution, foreign direct investment, and economic growth in China’s transformation |
| title_fullStr | Evaluation of the triangle-relationship of industrial pollution, foreign direct investment, and economic growth in China’s transformation |
| title_full_unstemmed | Evaluation of the triangle-relationship of industrial pollution, foreign direct investment, and economic growth in China’s transformation |
| title_short | Evaluation of the triangle-relationship of industrial pollution, foreign direct investment, and economic growth in China’s transformation |
| title_sort | evaluation of the triangle relationship of industrial pollution foreign direct investment and economic growth in china s transformation |
| topic | triangle-relationship foreign direct investment industrial pollution economic growth China |
| url | https://www.frontiersin.org/articles/10.3389/fenvs.2023.1123068/full |
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