TY  - CHAP
AB  - Abstract The central debate on pollution havens concerns whether the level of environmental regulation in developing countries influences foreign investment location decisions. Most empirical studies are based on aggregate data, while micro-level evidence is relatively lacking in the literature. To fill this research gap, this paper tests for the existence of intracountry pollution havens in China by estimating the determinants of foreign investment flows based on a large firm-level panel dataset. Evidence from this study supports the existence of pollution havens within China in certain industries. However, the sensitivity of foreign investment to environmental regulation varies significantly across industries with different pollution characteristics. Furthermore, when the impact of government subsidies on foreign investment is accounted for, the results show that subsidies can compensate for pollution treatment costs in provinces with stricter environmental regulation.
VL  - 14
SN  - 978-1-78441-179-4, 978-1-78441-178-7/1574-8715
DO  - 10.1108/S1574-871520140000014004
UR  - https://doi.org/10.1108/S1574-871520140000014004
AU  - Bu Maoliang
AU  - Zhai Shuwen
AU  - Zhang Jie
AU  - Zheng Wenping
PY  - 2014
Y1  - 2014/01/01
TI  - Foreign Direct Investment and Pollution Havens Hypothesis: Firm-Level Panel Data Evidence from China
T2  - Globalization and the Environment of China
T3  - Frontiers of Economics and Globalization
PB  - Emerald Group Publishing Limited
SP  - 73
EP  - 96
Y2  - 2024/04/26
ER  -