Impact of Environmental Regulation Distance on the Efficiency of OFDI

doi:10.12068/j.issn.1005-3026.2023.08.018

Abstract

Abstract: Based on the stochastic frontier gravity model， the impact of environmental regulation distance on the efficiency of OFDI and the moderating effect of bilateral economic relation as well as the technical efficiency were explored. The result showed that the regulation distance environmental is negatively associated with the efficiency of OFDI， investment flows from high-environment-regulated countries to low-environment-regulated countries based on cost effectiveness， and investment flows from low-environment-regulated countries to high-environment-regulated countries based on innovation effect. When the bilateral economic relations are tight， the greater two countries environmental regulation distance， the lower efficiency of OFDI. Meanwhile， Chinas efficiency of OFDI in different countries and regions is heterogeneous， and it interacts with location selection. Investment efficiency is higher in the developing countries， less developed regions and some developed countries. Efficiency in Asia and Africa is relatively higher when compared to Europe. Therefore， suggestions are provided including reducing the distance of environmental regulation， improving the efficiency of Chinas OFDI， and selecting reasonable investment locations.

Key words: environmental regulation distance; efficiency of OFDI; bilateral economic relation; stochastic frontier gravity model; regional difference

CLC Number:

F270

ZHANG Ya-nan， NING Ye， ZHUANG Zi-yun， ZHANG He. Impact of Environmental Regulation Distance on the Efficiency of OFDI[J]. Journal of Northeastern University(Natural Science), 2023, 44(8): 1201-1207.

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