Environmental Regulation, Anti-Corruption, Government Efficiency and FDI Location in China: a Province-level Analysis

نویسندگان

  • Matthew A. Cole
  • Robert J.R. Elliott
  • Jing Zhang
چکیده

In this paper we search for pollution haven consistent evidence within China. Using a province level data set and three different measures of environmental stringency, we investigate whether inward foreign direct investment (FDI) is attracted to those regions with relatively low environmental regulations. Our results are consistent with pollution haven seeking behaviour by foreign investors. In addition, using detailed Chinese regional data we construct two proxies to measure the level of regional government efficiency and corruption and find that FDI is attracted to regions with high levels of government efficiency and that are actively involved in the fight against corruption. JEL Classification: O13, L60, Q21, Q25, Q28

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تاریخ انتشار 2007