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Int. J. Environ. Res. Public Health 2018, 15(2), 221; https://doi.org/10.3390/ijerph15020221

Environmental Regulation, Foreign Direct Investment and Green Technological Progress—Evidence from Chinese Manufacturing Industries

School of Economics and Management, Southwest University, Chongqing 400715, China
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Received: 25 December 2017 / Revised: 21 January 2018 / Accepted: 23 January 2018 / Published: 29 January 2018
(This article belongs to the Special Issue Decision Models in Green Growth and Sustainable Development)
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Abstract

This study examines the spillover effects of foreign direct investment (FDI) on green technology progress rate (as measured by the green total factor productivity). The analysis utilizes two measures of FDI, labor-based FDI and capital-based FDI, and separately investigates four sets of industry classifications—high/low discharge regulation and high/low emission standard regulation. The results indicate that in the low discharge regulation and low emission standard regulation industry, labor-based FDI has a significant negative spillover effect, and capital-based FDI has a significant positive spillover effect. However, in the high-intensity environmental regulation industry, the negative influence of labor-based FDI is completely restrained, and capital-based FDI continues to play a significant positive green technological spillover effects. These findings have clear policy implications: the government should be gradually reducing the labor-based FDI inflow or increasing stringency of environmental regulation in order to reduce or eliminate the negative spillover effect of the labor-based FDI. View Full-Text
Keywords: environmental regulation; FDI; green technological progress; spillover effect environmental regulation; FDI; green technological progress; spillover effect
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Hu, J.; Wang, Z.; Lian, Y.; Huang, Q. Environmental Regulation, Foreign Direct Investment and Green Technological Progress—Evidence from Chinese Manufacturing Industries. Int. J. Environ. Res. Public Health 2018, 15, 221.

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