Abstract
KEYWORD: Environmental regulations, LOCFDI; Pollution intensive industries ABSTRACT: As more foreign direct investment (FDI) inflows to pollution intensive industries in China, policy makers become concerned with the environmental problems causing by FDI. Because of environmental regulation in different regions can be formulated with different strength, whether or not environmental regulations in different regions can affect the location choice of FDI in China. Us- ing the data of pollution intensive industries in 28 provinces, we examine the environmental regula- tion effects on the location choice of FDI (LOCFDI). Besides the regional total product volume and the area economic development level, the results also show that environmental regulation is one of the important determinants of LOCFDI. In some developed provinces, stricter environmental regula- tions have no effective influence on LOCFDI. While in other developing provinces, the environmen- tal regulations have particularly significant effects on LOCFDI.
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