DOAJ Open Access 2025

Does outward foreign direct investment improve environmental quality in home country?——Evidence from Chinese firms’ water pollution emissions

Suhua Tian Qin Xiong

Abstrak

This paper empirically examine the causal effect and mechanisms of China's outward foreign direct investment (OFDI) on pollution emissions. Employing the difference-in-differences (DID) alongside various heterogeneity robust estimation methods based on a series of firm-level data, our findings indicate that OFDI significantly reduces firms' chemical oxygen demand (COD) emissions. Moreover, it increases total output while reducing COD emission intensity. The mechanism analysis suggests that firms primarily attain emission reductions through reverse technology spillovers stemming from OFDI in host countries with more stringent environmental regulations. Additionally, such reductions are facilitated by improvements along both the intensive and extensive margins of exports.

Topik & Kata Kunci

Economic theory. Demography Economic growth, development, planning

Penulis (2)

Suhua Tian

Qin Xiong

Format Sitasi

APA MLA BibTeX

Tian, S., Xiong, Q. (2025). Does outward foreign direct investment improve environmental quality in home country?——Evidence from Chinese firms’ water pollution emissions. https://doi.org/10.1016/j.ceqi.2024.12.003

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Informasi Jurnal

Tahun Terbit: 2025
Sumber Database: DOAJ
DOI: 10.1016/j.ceqi.2024.12.003
Akses: Open Access ✓