Next Article in Journal
The Modifying Role of Socioeconomic Position and Greenness on the Short-Term Effect of Heat and Air Pollution on Preterm Births in Rome, 2001–2013
Previous Article in Journal
Adolescents’ Psychological Consequences and Cyber Victimization: The Moderation of School-Belongingness and Ethnicity
Article Menu

Export Article

Open AccessArticle

Effects of FDI on the Efficiency of Government Expenditure on Environmental Protection Under Fiscal Decentralization: A Spatial Econometric Analysis for China

1
School of Business, Hohai University, West Focheng Road 8, Nanjing 211100, China
2
Collaborative Innovation Center for Coastal Development and Preservation, Xikang Road 1, Nanjing 210098, China
3
School of Finance, Shanghai Lixin University of Accounting and Finance, Shanghai 201620, China
4
School of International Economy and Trade, Shanghai Lixin University of Accounting and Finance, Shanghai 201209, China
5
Innovation Research Institute of Traditional Chinese Medicine, Shanghai University of Traditional Chinese Medicine, Shanghai 201203, China
*
Authors to whom correspondence should be addressed.
Int. J. Environ. Res. Public Health 2019, 16(14), 2496; https://doi.org/10.3390/ijerph16142496
Received: 8 June 2019 / Revised: 1 July 2019 / Accepted: 9 July 2019 / Published: 12 July 2019
(This article belongs to the Section Environmental Science and Engineering)
  |  
PDF [764 KB, uploaded 14 July 2019]
  |  

Abstract

Most governments strive for an ecological civilization so the efficiency of government expenditure on environmental protection (EPEE) is an important issue. While it is recognized that foreign direct investment (FDI) enhances environmental protection, this investigation focuses on the effects of FDI on the efficiency of government expenditure on environmental protection under fiscal decentralization. Analysis is conducted using an output-oriented data envelopment analysis (DEA) scale return model to calculate the efficiency of environmental protection spending in China. Then, a spatial model is built to test the linkages among FDI, fiscal decentralization and the efficiency of government expenditure. The results reveal that, firstly, the efficiency of government spending has been enhanced over the last 10 years. Secondly, FDI is positively correlated with the efficiency of government environmental expenditure in terms of both quantity and quality of spending and it has a positive spillover effect. Thirdly, financial decentralization is negatively correlated with the efficiency of environmental spending, but it improves the effect of FDI. Accordingly, policy proposals are that the government should improve the supervision system for environmental spending and local governments should pursue FDI, improve the structure of FDI and use its spillover effect to enhance the efficiency of environmental expenditure. View Full-Text
Keywords: foreign direct investment; fiscal decentralization; efficiency of government expenditure on environmental protection; spatial model; spillover effect foreign direct investment; fiscal decentralization; efficiency of government expenditure on environmental protection; spatial model; spillover effect
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Zhang, J.; Qu, Y.; Zhang, Y.; Li, X.; Miao, X. Effects of FDI on the Efficiency of Government Expenditure on Environmental Protection Under Fiscal Decentralization: A Spatial Econometric Analysis for China. Int. J. Environ. Res. Public Health 2019, 16, 2496.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Int. J. Environ. Res. Public Health EISSN 1660-4601 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top