The Empirical Test on The Hypothesis of "Pollution Heaven" in Different Regions of China

"Pollution Heaven" hypothesis deems that environmental standards of developed countries are generally higher than in developing countries, consequently, high-pollution industries will move into developing countries. Is the hypothesis real in China? In this essay, we project a model to study empirically the relationship between FDI and environmental regulations in different regions of China based on the relative economic data during 1998-2008. According to the results ore find that environmental regulations on the impact of FDI in eastern region is significant but small, the impact in central and western region is insignificant. We could conclude that China has not became the world' s "pollution haven".