Environmental regulation and foreign investment: Evidence from China

IF 1.2 4区 管理学 Q3 ECONOMICS Journal of Economics & Management Strategy Pub Date : 2022-05-05 DOI:10.1111/jems.12483
Yunyi Hu, Haitao Yin, Jon J. Moon
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Abstract

This paper estimates the impact of environmental regulation on foreign investment using the 2003 Pollution Discharge Fee Reform in China as a quasi-natural experiment. Using a Difference-in-Differences method to investigate foreign investment from 2000 to 2007, we propose the “Pollution Deterrence Hypothesis” and the “Green Strategy Hypothesis” and provide evidence for the debate between these two hypotheses. We find that foreign investors' strategic responses to enhanced environmental regulations depend on their initial shareholder status in a firm. More specifically, after increased environmental regulation, foreign investors are less likely to invest in pollution-intensive firms in which they have held relatively small shares. However, foreign investors are more inclined to increase their shares in pollution-intensive firms in similar situations if they already held a relatively large number of shares. Based on the heterogeneous analysis, we suggest that our results are most apparent in regions with better local governance.

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环境监管与外商投资:来自中国的证据
本文以2003年中国排污费改革为准自然实验,考察了环境规制对外商投资的影响。本文运用差分法对2000 - 2007年的外商投资进行实证研究,提出了“污染威慑假说”和“绿色战略假说”,并为这两个假说之间的争论提供了证据。我们发现,外国投资者对加强环境法规的战略反应取决于其在公司的初始股东地位。更具体地说,在加强环境监管之后,外国投资者不太可能投资于他们持有相对较少股份的污染密集型企业。然而,在类似情况下,如果外国投资者已经持有相对大量的股份,他们更倾向于增加污染密集企业的股份。基于异质性分析,我们认为我们的结果在地方治理较好的地区最为明显。
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来源期刊
CiteScore
3.20
自引率
5.30%
发文量
43
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