金禾讲坛

时间：  10月15日（周四） 16:10-17:40 pm

腾讯会议 ID: 903 5233 2020

讲座人：中国农业大学 经济管理学院 林发勤 教授

Introduction：

Faqin Lin is now a Professor at the China Agricultural University, College of Economics and Management, Beijing, China and the associate editor of China Economic Review. He got his PhD from the university of Adelaide in 2012 and University of International Economics and Business in 2011. His main research area is international trade, economic development and applied econometric. His work has appeared in Journal of International Economics, Journal of Development Economics, European Economic Review，Journal of Economic Behavior and Organization, Journal of Comparative Economics and other international peer-reviewed journals.  

Title：

Environmental Regulation and Inward Foreign Direct Investment: Evidence from the Eleven Five-Year Plan in China

Abstract:

This paper investigates whether environmental regulations affect inward foreign direct investment. The identification uses the reduction target policy for air pollutants during 11th Five Year Plan period implemented by the Chinese government in 2006. Our difference-in-difference-in-differences estimation explores three-dimension variations; specifically, prefecture (i.e., high target prefectures versus low target prefectures), industry (more polluting industries relative to less polluting ones), and year (i.e., before and after 2005). We find that tougher environmental regulations lead to less inward foreign direct investment (FDI) through increasing the probability of exit and reducing the probability of entry of foreign invested enterprises. Mechanism analysis shows that foreign invested enterprises with relatively low productivity demonstrate strong negative response. This allocation of resource improves industry productivity.