Pollution emission reduction effect of the coordinated development of inward and outward FDI in China

This paper uses a panel data of 37 industrial sectors in China from 2003 to 2015, adopts the specification of a fixed effect model, and studies the influence of the coordinated development of inward and outward FDI on industrial pollution emissions. A negative correlation is found between the coordinated development level of inward and outward FDI and the industrial pollution emission level, indicating a pollution emission reduction effect associated with the coordinated development of inward and outward FDI. Furthermore, the moderation effect of global value chain position indicates that an industry can benefit from a stronger emission reduction effect associated with the coordinated development level of inward and outward FDI if it evolves to a higher position in the global value chain. In addition, the heterogeneity analysis indicates that industries with lower energy intensity, a lower ratio of state-owned enterprises, and with more green patents benefit from a more obvious effect on reducing industrial pollution emissions that is caused by the coordinated development of inward and outward FDI.