2020
DOI: 10.1002/ijfe.2218
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Environmental regulations and inward FDI in China: Fresh evidence from the asymmetric autoregressive distributed lag approach

Abstract: The relationship between environmental regulations and foreign direct investment (FDI) has garnered extensive attention, particularly in the context of China. The puzzle of whether environmental regulations deter or lure FDI has not resolved to the satisfaction of the curious mind. This research endeavor is to answer the question by exploring the asymmetric association between environmental regulations and FDI in China; utilizing a novel nonlinear autoregressive distributed lag (NARDL) approach. Our main resul… Show more

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Cited by 33 publications
(9 citation statements)
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“…The summary statistics contain the mean, median, maximum, minimum, standard deviation, skewness kurtosis, and Jarque-Bera statistics. The values of the Jarque-Bera test were obtained by inferring that our model exhibits deviation from the normal distribution and thereby necessitates an asymmetric approach such as quantile-on-quantile for empirical estimation (Shahbaz et al 2017 ; Ullah et al 2021 ; Ullah et al 2020b ).…”
Section: Empirical Results and Discussionmentioning
confidence: 99%
“…The summary statistics contain the mean, median, maximum, minimum, standard deviation, skewness kurtosis, and Jarque-Bera statistics. The values of the Jarque-Bera test were obtained by inferring that our model exhibits deviation from the normal distribution and thereby necessitates an asymmetric approach such as quantile-on-quantile for empirical estimation (Shahbaz et al 2017 ; Ullah et al 2021 ; Ullah et al 2020b ).…”
Section: Empirical Results and Discussionmentioning
confidence: 99%
“…Therefore, to confirm the presence of unit root, we have employed the Augmented Dicky-Fuller (ADF) unit root test. Most of the earlier studies suggest that a conventional unit root test does not provide robust estimates in the presence of structural breaks [38]. To provide an unbiased estimate in the presence of structural breaks, we have used the Zivot and Andrews unit root test.…”
Section: Data Description and Empirical Modelmentioning
confidence: 99%
“…For developing countries, FDI is an important channel for undertaking international technology transfer, cultivating the competitiveness of local industries, and realizing capital accumulation, technology accumulation, and human capital accumulation. China's rapid economic growth since the 1980s also benefited from the positive role of FDI in local industrial upgrading, technological innovation, and talent training (Kui-Yin and Lin 2004; Ullah et al 2020). However, existing researches have not reached a consistent conclusion about the impact of FDI on the ecological environment of developing countries.…”
Section: Introductionmentioning
confidence: 99%