The impact of foreign direct investment on carbon emissions in China: a provincial panel data analysis
This paper analyzes China’s provincial data from 2004 to 2021 using a panel regression analysis model to examine the impact of foreign direct investment (FDI) growth on China’s carbon emissions. The empirical results show that: 1) FDI, GDP per capita, industrial structure, and fiscal investment sign...
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| Format: | Article |
| Language: | English |
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General Association of Economists from Romania
2025-03-01
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| Series: | Theoretical and Applied Economics |
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http://store.ectap.ro/articole/1811.pdf
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| _version_ | 1849312838111199232 |
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| author | Xuchong YAN |
| author_facet | Xuchong YAN |
| author_sort | Xuchong YAN |
| collection | DOAJ |
| description | This paper analyzes China’s provincial data from 2004 to 2021 using a panel regression analysis model to examine the impact of foreign direct investment (FDI) growth on China’s carbon emissions. The empirical results show that: 1) FDI, GDP per capita, industrial structure, and fiscal investment significantly contribute to increased carbon emissions, while economic openness has a significant negative effect. 2) From the perspective of regional samples, FDI in the eastern and central regions positively influences carbon emissions, with GDP per capita having a positive effect on the eastern region and a negative one in the central and western regions. Industrial structure, fiscal investment, and population also significantly affect carbon emissions, highlighting regional economic and structural disparities. The analysis suggests that early environmental protection inadequacies and the influx of high-pollution, high-energy industries due to FDI contributed to rising emissions. Therefore, this study recommends enhancing FDI quality standards, limiting high-pollution industries, and promoting investment in green technologies to foster a low-carbon economy. |
| format | Article |
| id | doaj-art-6c2482cb0b484c8a92f24630a7686007 |
| institution | Kabale University |
| issn | 1841-8678 1844-0029 |
| language | English |
| publishDate | 2025-03-01 |
| publisher | General Association of Economists from Romania |
| record_format | Article |
| series | Theoretical and Applied Economics |
| spelling | doaj-art-6c2482cb0b484c8a92f24630a76860072025-08-20T03:52:57ZengGeneral Association of Economists from RomaniaTheoretical and Applied Economics1841-86781844-00292025-03-01XXXII18510218418678The impact of foreign direct investment on carbon emissions in China: a provincial panel data analysisXuchong YAN0 Osaka City University, Japan This paper analyzes China’s provincial data from 2004 to 2021 using a panel regression analysis model to examine the impact of foreign direct investment (FDI) growth on China’s carbon emissions. The empirical results show that: 1) FDI, GDP per capita, industrial structure, and fiscal investment significantly contribute to increased carbon emissions, while economic openness has a significant negative effect. 2) From the perspective of regional samples, FDI in the eastern and central regions positively influences carbon emissions, with GDP per capita having a positive effect on the eastern region and a negative one in the central and western regions. Industrial structure, fiscal investment, and population also significantly affect carbon emissions, highlighting regional economic and structural disparities. The analysis suggests that early environmental protection inadequacies and the influx of high-pollution, high-energy industries due to FDI contributed to rising emissions. Therefore, this study recommends enhancing FDI quality standards, limiting high-pollution industries, and promoting investment in green technologies to foster a low-carbon economy. http://store.ectap.ro/articole/1811.pdf foreign direct investmentcarbon emissionschinatwo-way fixed effects |
| spellingShingle | Xuchong YAN The impact of foreign direct investment on carbon emissions in China: a provincial panel data analysis Theoretical and Applied Economics foreign direct investment carbon emissions china two-way fixed effects |
| title | The impact of foreign direct investment on carbon emissions in China: a provincial panel data analysis |
| title_full | The impact of foreign direct investment on carbon emissions in China: a provincial panel data analysis |
| title_fullStr | The impact of foreign direct investment on carbon emissions in China: a provincial panel data analysis |
| title_full_unstemmed | The impact of foreign direct investment on carbon emissions in China: a provincial panel data analysis |
| title_short | The impact of foreign direct investment on carbon emissions in China: a provincial panel data analysis |
| title_sort | impact of foreign direct investment on carbon emissions in china a provincial panel data analysis |
| topic | foreign direct investment carbon emissions china two-way fixed effects |
| url |
http://store.ectap.ro/articole/1811.pdf
|
| work_keys_str_mv | AT xuchongyan theimpactofforeigndirectinvestmentoncarbonemissionsinchinaaprovincialpaneldataanalysis AT xuchongyan impactofforeigndirectinvestmentoncarbonemissionsinchinaaprovincialpaneldataanalysis |