The Impact on Environmental Kuznets Curve by Trade and Foreign Direct Investment in China |
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| Authors: | Yang Haisheng Jia Jia Zhou Yongzhang Wang Shugong |
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| Institution: | 1. Center for Earth Environment &2. Resources , Zhongshan University , Guangzhou , 510275;3. Lingnan College, Zhongshan University , Guangzhou , 510275;4. Resources , Zhongshan University , Guangzhou , 510275;5. Institute of Environmental Science, Zhongshan University , Guangzhou , 510275 |
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| Abstract: | Abstract Based on data of trade, foreign direct investment (FDI), economic development and environmental conditions in China's 30 provinces between 1990–2002, this paper deals with the impact on Environmental Kuznets Curve (EKC) of trade and FDI in China. The results show no direct impact on EKC of trade, on the one hand. However, trade contributes significantly to economic growth, and has played a positive role in introducing advanced pollution prevention technology and environmental management methodology to China. Therefore, a proactive trade policy will help solve the environmental pollution problem brought by economic growth. On the other hand, there is a positive correlation between FDI and pollutant emission, which proves that FDI does have some negative influence on environment in China due to hasty introduction of foreign capital and inadequate environmental management system in China. |
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| Keywords: | Environmental economy free trade FDI Environmental Kuznets Curve econometric model Sustainable development |
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