Do Intra-Country Pollution Havens Exist?

Abstract

China has, in recent years, been one of the largest recipients of worldwide FDI inflows. However, there remains a significant disparity in the geographical distribution of FDI inflows within China. The majority of the FDI is concentrated in the eastern regions. Similarly, pollution emissions vary across regions. Simultaneously, China’s environmental regulation standards are relatively weaker than those in developed countries, and the strength of the enforcement of those regulations is different across regions.