All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC
ralph lauren polo

Wen-bin Peng, Kun Tian and Guo-Cheng Xiang
''A VAR analysis of FDI and environmental regulation: China's case''
( 2011, Vol. 31 No.1 )
This paper employs impulse response function of VAR model and the estimation variance decomposition method to investigate the two-way dynamic relationship between environmental regulation and FDI during 1985 to 2009.The result of generalized impulse response shows The impact effects of environmental regulation exerting to FDI become less and less in long-term.,which verifies 'hypothesis of pollution heaven'.The inverse U-shape curve of 'environmental regulation-- FDI' depends on the choice of regulation indicators.Furthermore,The positive impulse response shows the inflows of FDI would cause the deterioration of ecology and the intervene of governments,which gives pressure to the transformation of environmental regulation standard.
Keywords: FDI, environmental regulation, VAR
Manuscript Received : Feb 16 2011 Manuscript Accepted : Feb 17 2011

  This abstract has been downloaded 684 times                The Full PDF of this paper has been downloaded 92689 times