Does Outward Foreign Direct Investment Improve Environmental Quality in Home Country?—Evidence from Chinese Firms'Water Pollution Emissions
We empirically examine the causal effects and mechanisms of China's outward foreign direct investment on pollution emissions.Using a difference-in-differences framework and various heterogeneity robust estimation methods based on a series of firm-level data,we find that outward foreign direct invest-ment significantly reduces firms'COD emissions.Moreover,it increases total output while reducing COD emission intensity.The mechanism analysis shows that firms achieve emission reductions mainly through reverse technology spillovers from outward foreign direct investment in host countries with stricter envi-ronmental regulations and by promoting the intensive margin and extensive margin of exports.
outward foreign direct investmentfirms'pollution emissionsdifference-in-differences
NETL
NSTL
万方数据
