Abstract
AbstractChina strengthened environmental regulation to inhibit the formation of new pollution havens and to change its growth mode. This study explores the efficiency for attracting foreign direct investment (FDI) with the inclusion of environmental regulation in 31 Chinese provinces over the period 2015–2017, using a dynamic direction distance function‐data envelopment analysis (DDF‐DEA) model. The empirical results show that the mean overall efficiencies and ranks in the eastern region are significantly higher than those in the non‐eastern regions with or without environmental regulation, but the environmental regulation has a greater impact on the efficiency of attracting FDI in the economically developed areas. The average efficiencies for both the number of foreign companies and FDI amount in the eastern regions are higher than those in the non‐eastern regions. The industrial pollution control expenditure efficiency with the inclusion of environmental regulation of each province keeps in efficiency frontier. Relative to the efficiency of input variables, the output efficiencies in the non‐eastern regions have more scope to improve.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
