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Environmental Impact of Foreign vs. Domestic Capital Investment in China
Author(s) -
Yang Boqiong,
Brosig Stephan,
Chen Jianguo
Publication year - 2013
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.2012.00370.x
Subject(s) - foreign direct investment , capital intensity , china , capital (architecture) , capital formation , capital consumption allowance , economics , foreign capital , investment (military) , capital deepening , capital accumulation , pollution , fixed capital , fixed investment , financial capital , international economics , macroeconomics , human capital , market economy , geography , ecology , archaeology , politics , political science , biology , law
We compare environmental impacts associated with incoming foreign direct investment vs. domestic capital in China. We use aggregate data on Chinese provinces’ economic and pollution indicators to explore the effects of the financial origin of fixed capital. Our simultaneous models consider three prime channels through which these effects work: economic scale, sectoral composition and pollution intensity. Results show that emissions associated with foreign‐financed capital are lower than with domestically financed capital for some but not all of the considered types of pollution.