Evaluation of the triangle-relationship of industrial pollution, foreign direct investment, and economic growth in China’s transformation

Unlike previous research on foreign direct investment (FDI), economic growth, and pollution, this study focuses investigating complex interactions specifically. A dynamic simultaneous equation model is adopted, together with the one-step systematic GMM, drawn upon to empirically analyze 30 Chinese provinces between 2006 2017. The results show that FDI does promote growth in China which, turn, positively affects FDI. However, inflow both have negative environmental effects. higher level of pollution corresponds becoming more attractive. In case China, therefore, pollution-haven hypothesis holds weight. Specifically, industrial found affect indicating fall left side Kuznets Curve. Accordingly, policymakers should look optimize China’s structure, guide high-quality FDI, healthy sustainable development under country’s new philosophy.