FDI, Economic Growth and China's Carbon Emission Intensity: An Empirical Study Based on Spatial Panel Econometric Model

Abstract

With the expansion of China's foreign investment and rapid economic growth, China's carbon emissions are also increasing year by year. Using spatial panel econometric model and data from 30 provinces in China from 1995 to 2015, this paper studies the relationship among FDI, economic growth and carbon emissions in China. The results show that there is no significant positive correlation between FDI and carbon emissions in China, and there is a significant positive correlation between economic growth and carbon emissions. Finally, based on the empirical results, this paper proposes corresponding policy recommendations.