The temporal-spatial evolution characteristics of shadow economy in China: Empirical evidence using prefecture level data

Yang, Xiaolei; Yang, Mian

doi:10.1016/j.cities.2023.104693

Cities

2024

DOI: 10.1016/j.cities.2023.104693

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The temporal-spatial evolution characteristics of shadow economy in China: Empirical evidence using prefecture level data

Xiaolei Yang,

Mian Yang

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2024

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Cited by 2 publications

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Can the digital economy development limit the size of the informal economy? A nonlinear analysis based on China's provincial panel data

Lv,

Li,

Zhu

et al. 2024

Economic Analysis and Policy

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Can the digital economy development limit the size of the informal economy? A nonlinear analysis based on China's provincial panel data

Lv,

Li,

Zhu

et al. 2024

Economic Analysis and Policy

View full text Add to dashboard Cite

Is China Really a “Pollution Haven”: How Foreign Direct Investment Shape Carbon Emission in China? Evidence From 265 Chinese Prefecture-Level Cities

YU,

YANG,

ZHOU

et al. 2024

Singapore Econ. Rev.

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This paper explores the applicability of the well-known “Pollution Haven” hypothesis and “Pollution Halo” hypothesis at the city-level in contemporary China. The fixed effect model and the threshold effect model are employed to investigate the relationship between foreign direct investment (FDI) and carbon emission in 265 Chinese prefecture-level cites. Based on the entire sample, the results of fixed effect model support the applicability of “Pollution Haven” hypothesis, while the hypothesis is substantiated primarily in eastern and western China. In contrast, the central part of China does not conform to either hypothesis, suggesting that the emergence of a distinct “Pollution Haven Basin” within the country. Unlike the inverted “U-shaped” curve commonly posited in the existing literature, the threshold effect model unveils a “U-shaped” connection between FDI and carbon emission. Specifically, we find that the turning point is at around $52.93 million, which implies that FDI needs to surpass a certain threshold to actively drive carbon emission in the presence of a “Pollution Haven Engine”. Accordingly, in the context of more in-depth international trade and China’s carbon neutralization commitment, it would be wise for the Chinese local governments to control the FDI scale, and encourage FDI to tilt toward the clean sectors.

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The temporal-spatial evolution characteristics of shadow economy in China: Empirical evidence using prefecture level data

Cited by 2 publications

References 50 publications

Can the digital economy development limit the size of the informal economy? A nonlinear analysis based on China's provincial panel data

Can the digital economy development limit the size of the informal economy? A nonlinear analysis based on China's provincial panel data

Is China Really a “Pollution Haven”: How Foreign Direct Investment Shape Carbon Emission in China? Evidence From 265 Chinese Prefecture-Level Cities

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