Abstract

The extant literature has raised debates concerning the environmental performance of foreign direct investment (FDI) in China. We apply meta-analysis of 121 estimates reported in 40 studies to quantitatively synthesize our knowledge and understanding of the topic. Findings indicate that FDI lead to better environmental performance through reducing pollution, but not green total factor productivity. The meta-regression analysis reveals that the environmental pollution effects of FDI is moderated by FDI measurements, environmental regulations and the consideration of endogeneity in empirical estimations. The results are discussed with references to academic and practical implications.

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