ORIGINAL RESEARCH
Does Environmental Regulation Affect
the Introduction of Foreign Direct Investment
in China? --Empirical Research Based
on the Spatial Durbin Model
| 1 | School of Public Administration, Guangdong University of Finance and Economics, Guangzhou, China |
| 2 | Personnel Education Department, Foshan Municipal Local Taxation Bureau, Foshan, China |
| 3 | School of Business Administration, Guangdong University of Finance and Economics, Guangzhou, China |
CORRESPONDING AUTHOR
Yuanhua Yang
Guangdong University of Finance and Economics, 21 Luntou Road, Haizhu District, Guangzhou City, Guangdong Province, 510320 Guangzhou, China
Guangdong University of Finance and Economics, 21 Luntou Road, Haizhu District, Guangzhou City, Guangdong Province, 510320 Guangzhou, China
Submission date: 2017-08-21
Final revision date: 2018-01-05
Acceptance date: 2018-01-21
Online publication date: 2018-07-31
Publication date: 2018-11-20
Pol. J. Environ. Stud. 2019;28(1):415–424
KEYWORDS
TOPICS
ABSTRACT
Based on the statistical data of 30 provinces in China from 2003 to 2014, this paper uses the
spatial Durbin model to empirically test the influence of China’s urban environmental regulation on
the introduction of foreign direct investment (FDI). The results show that there is significant spatial
correlation between environmental regulation and FDI. Environmental regulation has a negative impact
on the introduction of FDI, but the impact is not significant across the country, indicating that the evidence
of the pollution haven hypothesis is insufficient in China. Then, the influential effect of environmental
regulation on the introduction of FDI has obvious regional differences. The level of environmental
regulation in the eastern region is positively correlated with the convenience in FDI introduction, while
in the central and western regions, environmental regulation pose a hindrance to the introduction of FDI,
which is remarkable only in the central area. In addition, labor costs and human capital levels have a
direct effect on the introduction of FDI in the region. The level of regional economic development and
R&D investment have a significant indirect impact on the introduction of FDI in surrounding areas, and
economic openness has a significant impact on the introduction of FDI in all regions.
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