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FDI,Capital Deepening and Pollution Emissions——Based on 1997-2010 Provincial Panel Data Analysis |
MENG Yuan,ZHENG Yi |
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Abstract Based on the provincial industrial statistics panel data from 1997 to 2010, this paper uses DEA for calculating the technical efficiency of Chinese environment and investigating the inherent relations of FDI and the industrial pollution emissions. The empirical results show that: FDI, capital endowment, the proportions of government-owned output in the national economy and the technical efficiency of environment have remarkable influences on the pollution emissions of industries of China. The empirical results verify the pollution havens hypothesis. Not only FDI inflow brings about a bad result (enormous pollution emissions), but also drives industrialization and capital deepening of China through relevance effect, indirect leading to the increase of pollution emissions. Both capital endowment and the rising proportions of government-owned output in the national economy promote the whole industrial pollution emissions. However, the technical efficiency of environment notably reduces it
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Received: 17 May 2012
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Corresponding Authors:
ZHENG Yi
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