---

Journal of Environmental Accounting and Management 6(2) (2018) 115--124 | DOI:10.5890/JEAM.2018.06.003

Kaijun Yang$^{1}$, ChanWang$^{1}$, Yuanyuan Wen$^{2}$,$^{3}$, Xianqiang Mao$^{2}$

$^{1}$ School of Business, Hohai University, Nanjing 211100, Jiangsu, China

$^{2}$ School of Environment, Beijing Normal University, Beijing 1000875, China

$^{3}$ Foreign Economic Cooperation Office, Ministry of Environmental Protection, Beijing 100035, China

Download Full Text PDF

 

Abstract

Based on the data of 11 provinces or cities in the Yangtze River Economic Zone from the year of 2006 to 2015,through constructing the panel threshold model, this paper analyzed the threshold effect of the two-way FDI on the upgrading of industrial structure and environment on different levels of environmental regulation. The results show that two-way FDI can effectively reduce environmental pollution, while the emission reduction effects are significantly different under different environmental regulations, too loose or too strict environmental constraints would inhibit the technical spillover effect of IFDI and the reversely technological spillover effect of OFDI, thus the environmental improvement effect cannot be fully played. In summary, only with appropriate environmental regulations, twoway FDI can promote the upgrading of the overall industrial structure of the Yangtze River economic belt, maximize its emission reduction effect at the same time, thus achieve the dual goals of economic development and environmental protection in the Yangtze River Economic Zone.

References

1. [1]	Bai, J.H. and Lv, X.H. (2015), Quality of FDI and improvement in environmental pollution in China, Journal of International Trade, 08, 72-83.

2. [2]	Copeland, B.R. and Taylor, M.S. (1994), North-South trade and the environment,Quarterly Journal of Economics, 109(3), 755-787.

3. [3]	Fu, X. and Pan G.X. (2016), Empirical Study on the Impact of FDI on the Carbon Emissions in China's Logistics Industry, China Population, Resources and Environment, 26(01), 39-46.

4. [4]	Grossman, G.M. and Krueger, A.B. (1991), Environmental Impacts of a North American Free Trade Agreement, National Bureau of Economic Research Working Paper 3914, Cambridge MA.

5. [5]	Ji, Z.Y., Mao, J., and Lai, X.F. (2015), Impact of FDI Scale on Chin's Environmental Pollution: Empirical Test Based on 30-province Panel Data Model, World Economy Study , 03, 56-64, 128.

6. [6]	Kanjilal, K. and Ghosh, S. (2013), Environmental Kuznets Curve for India: Evidence form Tests for Cointegration with Unknown Structural Breaks, Energy Policy, 56, 509-515.

7. [7]	Li, Z.H. (2016), Does FDI Increase or Decrease China's Industrial Carbon Emissions: From the Perspective of Threshold Effect, Economic Survey, 33(02), 66-71.

8. [8]	Lichtenberg, F. (2001), Does Foreign Direct Investment Transfer Technology across Borders? Review of Economics & Statistics, 83(3), 490-497.

9. [9]	Liu, H.Y. and Li, M. (2016), Effect of OFDI on Carbon Emission in Home Country, Industrial Technology & Economy, 35(08), 12-18.

10. [10]	Mani, M. and Wheeler, D. (1997), In SEARCH OF POLLUTION HAVENS? Dirty industry migration in the world economy, Journal of Environment Development, 7(3), 215-247.

11. [11]	Nie, F. and Liu, H.Y. (2015), Correlation between FDI, environmental pollution and economic growth: empirical test based on dynamic simultaneous equation model, Journal of International Trade, 02, 72-83.

12. [12]	Nie, F. and Liu, H.Y. (2016), Carbon Emission Effect of China's OFDI Based on the Urbanization ThresholdModel, China Population, Resources and Environment, 26(09), 123-131.

13. [13]	Porter,M.E. and Claas, V.D.L. (1995), Toward a new conception of the environment-competitiveness relationship, Journal of Economic Perspectives, 9(4), 97-118.

14. [14]	Saboori, B., Sulaiman, J., and Mohd, S. (2012), Economic growth and CO2 emissions in Malaysia: A cointegration analysis of the Environmental Kuznets Curve, Energy Policy, 51(4), 184-191.

15. [15]	Teng, X.H., Wen, C.H., Qing, Y., and Xu, X.P. (2018), Adhere to the Principle of "Advocating Large-scale Protection and Abandoning Large-scale Development", China Environmental News, 2018-02-22(003).

16. [16]	Xu, K. and Wang, X. (2015), Effect of OFDI on Carbon Emission in Home Country: Based on 2003-2011 Provincial Panel Data, Ecological Economy 31(01), 47-54.

17. [17]	Yang, M. and Wang, Y. (2016), Impact of FDI on TFP in China: An Empirical Study at the Provincial Level, Inquiry into Economic Issues, 05, 30-37.

18. [18]	Ye, A.Z. and Zheng,W.J. (2016), Spatiotemporal Conduction Effects of Economic Growth, FDI and Environmental Pollution: An Analysis Based on Semiparametric Spatial Panel VAR Model, Soft Science, 30(01), 17-21.

19. [19]	Yu, G.S. (2017), Can OFDI reduce the pollution of the home country: An empirical study based on the threshold effect of multinational panel data, International Business (Journal of University of International Business and Economics), 01, 131-139.

20. [20]	Zarsky, L., Havens, H., and Spaghetti. (1999), Untangling the evidence about foreign direct investment and the environment, Foreign Direct Investment and The Environment, 1, 47-74.

21. [21]	Zhang, C., Lu, Y., Guo, L., and Yu, T.S. (2011), Environmental regulation intensity and production technology progress, Economic Research Journal, 46(02), 113-124.

22. [22]	Zhang, Y. and Jiang, D.C. (2014), FDI, Government Supervision and Water Pollution in China: Empirical Test Based on Decomposition Index of Industrial Structure and Technological Progress, Economics Quarterly, 13(02), 491-514.

23. [23]	Zheng, Q. (2017), Does OFDI promote TFP growth in home country: empirical test based on financial development threshold, Journal of International Trade, 07, 131-141.

24. [24]	Zhou, L. and Pang, C.C. (2013), Environmental Effect of OFDI on Home Country: Based on Regional Differences, China Population, Resources and Environment, 23(08), 131-139.