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Environmental Impact of Foreign Direct Investment toward Host Countries

Globalization and the Environment of China

ISBN: 978-1-78441-179-4, eISBN: 978-1-78441-178-7

ISSN: 1574-8715

Publication date: 13 November 2014

Abstract

Accompany with the development of economy, the environment becomes deteriorating, especially in developing countries. Many studies found that foreign direct investment (FDI) with the effect of technology spillover would be one of the best ways to solve the environmental problem. By using the model of trade theory distinguishing between environmental and productive technology and separately analyzing the technology spillover effect of these two technologies on reducing environmental pollution in host countries, we find that the pollution problem could be worse if more intensive pollution industrial structure is induced by the environmental technology development. Naturally, this did not mean restraining the development of technology, but rather emphasizing the importance of the regulation and the industrial structure.

Keywords

Citation

Yang, B., Yang, J. and Zhao, Q. (2014), "Environmental Impact of Foreign Direct Investment toward Host Countries", Globalization and the Environment of China (Frontiers of Economics and Globalization, Vol. 14), Emerald Group Publishing Limited, Bingley, pp. 21-43. https://doi.org/10.1108/S1574-871520140000014002

Publisher

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Emerald Group Publishing Limited

Copyright © 2014 Emerald Group Publishing Limited