The Impact of Foreign Direct Investment on Environmental Pollution in China: Corruption Matters
Abstract
:1. Introduction
2. Literature Review
2.1. Institutional Quality and Corruption
2.2. FDI and Environmental Pollution
2.3. Corruption and FDI
2.4. Corruption and Economic Growth
2.5. Research Gap
3. Methodology and Data
3.1. The Econometric Model
3.2. Variable Definitions and Data Sources
4. Results and Discussions
4.1. Spatial Autocorrelation of Environmental Pollution in China’s Provinces
4.2. Baseline Regression Results and Analyses
4.3. Robustness Test
4.4. Empirical Results and Analyses by Region
5. Conclusions
6. Policy Implications
Author Contributions
Funding
Acknowledgments
Conflicts of Interest
References
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Year | EP1 | EP2 | ||
---|---|---|---|---|
Moran’s I | Geary’s C | Moran’s I | Geary’s C | |
1994 | 0.131 *** | 0.832 *** | 0.158 *** | 0.820 *** |
1995 | 0.140 *** | 0.820 *** | 0.149 ** | 0.834 *** |
1996 | 0.128 *** | 0.841 *** | 0.163 *** | 0.909 *** |
1997 | 0.156 *** | 0.822 *** | 0.142 ** | 0.832 *** |
1998 | 0.130 *** | 0.850 *** | 0.137 ** | 0.841 *** |
1999 | 0.147 *** | 0.871 *** | 0.150 ** | 0.819 ** |
2000 | 0.109 *** | 0.873 *** | 0.162 *** | 0.800 ** |
2001 | 0.127 *** | 0.866 *** | 0.173 *** | 0.804 ** |
2002 | 0.126 *** | 0.868 *** | 0.165 *** | 0.805 ** |
2003 | 0.136 *** | 0.856 *** | 0.047 ** | 0.817 * |
2004 | 0.096 *** | 0.883 *** | 0.043 ** | 0.821 *** |
2005 | 0.126 *** | 0.856 *** | 0.124 *** | 0.883 *** |
2006 | 0.123 *** | 0.859 *** | 0.105 *** | 0.866 *** |
2007 | 0.114 *** | 0.820 *** | 0.121 *** | 0.872 *** |
2008 | 0.092 *** | 0.819 *** | 0.128 *** | 0.883 *** |
2009 | 0.110 *** | 0.818 *** | 0.115 *** | 0.875 *** |
2010 | 0.165 *** | 0.853 ** | 0.132 *** | 0.895 *** |
2011 | 0.158 ** | 0.828 * | 0.105 *** | 0.870 *** |
2012 | 0.131 ** | 0.838 ** | 0.107 *** | 0.881 *** |
2013 | 0.122 ** | 0.853 ** | 0.121 *** | 0.864 *** |
2014 | 0.127 ** | 0.833 ** | 0.113 *** | 0.879 *** |
2015 | 0.128 ** | 0.832 ** | 0.124 *** | 0.877 *** |
Explanatory Variables | EP1 | EP2 | ||||
---|---|---|---|---|---|---|
(1) | (2) | (3) | (4) | (5) | (6) | |
COR1 | 0.03 ** | 0.03 ** | 0.02 ** | 0.10 ** | 0.19 *** | 0.18 *** |
(0.04) | (0.04) | (0.04) | (0.05) | (0.05) | (0.05) | |
FDI | 0.01 ** | 0.01 ** | 0.01 ** | 0.06 ** | 0.08 *** | 0.08 *** |
(0.02) | (0.02) | (0.02) | (0.02) | (0.02) | (0.02) | |
0.01 ** | 0.01 ** | 0.01 ** | 0.01 ** | 0.02 *** | 0.02 *** | |
(0.01) | (0.01) | (0.01) | (0.01) | (0.01) | (0.01) | |
Y | 1.62 *** | 1.61 *** | 1.65 *** | 0.51 * | 0.25 ** | 0.33 ** |
(0.24) | (0.22) | (0.23) | (0.16) | (0.16) | (0.16) | |
Y2 | −0.04 *** | −0.04 *** | −0.04 *** | −0.03 *** | −0.02 *** | −0.03 *** |
(0.01) | (0.01) | (0.01) | (0.04) | (0.04) | (0.04) | |
IND | 0.01 *** | 0.01 *** | 0.01 *** | 0.01 *** | 0.01 ** | 0.01 *** |
(0.01) | (0.01) | (0.01) | (0.02) | (0.01) | (0.01) | |
POP | −0.47 *** | −0.37 ** | −0.32 ** | −0.77 *** | −0.60 *** | −0.65 *** |
(0.15) | (0.14) | (0.14) | (0.18) | (0.18) | (0.18) | |
OP | 0.01 ** | 0.01 ** | 0.01 *** | 0.01 ** | 0.01 ** | 0.01 * |
(0.01) | (0.01) | (0.01) | (0.01) | (0.01) | (0.01) | |
EN | 0.73 *** | 0.73 *** | 0.73 *** | 0.87 *** | 0.77 *** | 0.79 *** |
(0.05) | (0.05) | (0.05) | (0.07) | (0.07) | (0.07) | |
UR | 0.02 *** | 0.02 *** | 0.02 *** | 0.01 ** | 0.01 * | 0.01 * |
(0.01) | (0.01) | (0.01) | (0.01) | (0.01) | (0.01) | |
0.23 *** | 0.20 *** | 0.15 *** | 0.63 *** | 0.17 *** | 0.05 * | |
(0.05) | (0.04) | (0.03) | (0.11) | (0.06) | (0.05) | |
R2 | 0.86 | 0.77 | 0.76 | 0.91 | 0.86 | 0.83 |
LM Lag | 359 *** | 15 *** | 34.9 *** | 5.45 ** | 4.61 ** | 3.32 ** |
LM Lag(Robust) | 357 *** | 15 *** | 34.8 *** | 5.51 ** | 4.56 ** | 3.28 ** |
LM Error | 1.91 | 0.05 | 0.11 | 0.01 | 0.05 | 0.04 |
LM Error(Robust) | 0.17 | 0.01 | 0.01 | 0.07 | 0.01 | 0.01 |
Weight Type | WD | WE | WM | WD | WE | WM |
Explanatory Variables | EP1 | EP2 | ||||
---|---|---|---|---|---|---|
(1) | (2) | (3) | (4) | (5) | (6) | |
COR2 | 0.06 ** | 0.05 ** | 0.05 ** | 0.07 ** | 0.15 *** | 0.14 ** |
(0.04) | (0.04) | (0.04) | (0.05) | (0.05) | (0.05) | |
FDI | 0.01 *** | 0.01 *** | 0.01 *** | 0.01 *** | 0.01 *** | 0.01 *** |
(0.02) | (0.02) | (0.02) | (0.02) | (0.02) | (0.02) | |
0.01 ** | 0.01 ** | 0.01 ** | 0.01 ** | 0.01 ** | 0.01 ** | |
(0.01) | (0.01) | (0.01) | (0.01) | (0.01) | (0.01) | |
Control Variables | Yes | Yes | Yes | Yes | Yes | Yes |
0.23 *** | 0.19 *** | 0.15 *** | 0.65 *** | 0.15 ** | 0.03 * | |
(0.05) | (0.04) | (0.03) | (0.11) | (0.06) | (0.05) | |
R2 | 0.74 | 0.76 | 0.72 | 0.90 | 0.86 | 0.82 |
Weight Type | WD | WE | WM | WD | WE | WM |
Region | Province |
---|---|
Eastern | Beijing, Tianjin, Hebei, Liaoning, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Guangdong, and Hainan |
Central | Shanxi, Jilin, Heilongjiang, Anhui, Jiangxi, Henan, Hubei, and Hunan |
Western | Inner Mongolia, Guangxi, Sichuan, Guizhou, Yunnan, Shaanxi, Gansu, Qinghai, Ningxia, and Xinjiang |
Explanatory Variables | Eastern | Central | Western | |||
---|---|---|---|---|---|---|
EP1 | EP2 | EP1 | EP2 | EP1 | EP2 | |
(1) | (2) | (3) | (4) | (5) | (6) | |
COR1 | 0.05 * | 0.14 ** | 0.09 * | 0.35 *** | 0.11 ** | 0.18 * |
(0.07) | (0.09) | (0.11) | (0.12) | (0.09) | (0.11) | |
FDI | 0.06 ** | 0.05 * | 0.17 *** | 0.41 *** | 0.17 *** | 0.19 *** |
(0.02) | (0.03) | (0.13) | (0.15) | (0.15) | (0.18) | |
0.01 ** | 0.01 * | 0.04 *** | 0.10 *** | 0.05 *** | 0.06 *** | |
(0.01) | (0.01) | (0.03) | (0.04) | (0.04) | (0.05) | |
Control Variables | Yes | Yes | Yes | Yes | Yes | Yes |
0.08 * | 0.52 *** | 0.29 *** | 0.04 * | 0.26 *** | 0.43 *** | |
(0.07) | (0.11) | (0.08) | (0.11) | (0.08) | (0.13) | |
R2 | 0.77 | 0.77 | 0.73 | 0.80 | 0.83 | 0.87 |
Weight Type | WD | WE | WM | WD | WE | WM |
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Share and Cite
Wang, S.; Wang, H.; Sun, Q. The Impact of Foreign Direct Investment on Environmental Pollution in China: Corruption Matters. Int. J. Environ. Res. Public Health 2020, 17, 6477. https://doi.org/10.3390/ijerph17186477
Wang S, Wang H, Sun Q. The Impact of Foreign Direct Investment on Environmental Pollution in China: Corruption Matters. International Journal of Environmental Research and Public Health. 2020; 17(18):6477. https://doi.org/10.3390/ijerph17186477
Chicago/Turabian StyleWang, Shi, Hua Wang, and Qian Sun. 2020. "The Impact of Foreign Direct Investment on Environmental Pollution in China: Corruption Matters" International Journal of Environmental Research and Public Health 17, no. 18: 6477. https://doi.org/10.3390/ijerph17186477