Growth, FDI, and the Environment: Evidence from Chinese Cities

Abstract

In this chapter, we investigate the relationship between economic growth and industrial pollution emissions in China using data for 112 major cities from 2001 to 2004. We also compare the environmental effects of domestic firms to those of foreign firms. Foreign firms are split into two groups: affiliates from Hong Kong, Macao, and Taiwan, and affiliates from other foreign economies. We chose four industrial water pollution indicators (wastewater, chemical oxygen demand, hexavalent chromium compounds, and petroleum-like matter) and four industrial air pollution indicators (waste gas, sulphur dioxide, soot, and dust).