In the context of the coordinated development of the Beijing-Tianjin-Hebei region, scientifically assessing the impact of Foreign Direct Investment (FDI) on environmental quality holds significant practical significance for China. Based on panel data from 2003 to 2021 for 13 prefecture-level and above cities in the Beijing-Tianjin-Hebei region, this paper employs various econometric methods to examine the effects of FDI on environmental quality. The study finds that FDI exhibits a significant inverted "U" relationship with environmental quality, and this conclusion remains unchanged after a series of robustness tests and endogeneity treatments. Mechanism analysis indicates that industrial scale serves as a potential channel through which FDI influences environmental quality. Heterogeneity analysis reveals that compared to coastal areas, the inverted "U" shaped relationship between FDI and environmental quality is more pronounced in inland regions. Spatial econometric analysis demonstrates a significant negative spatial effect on environmental quality, suggesting that improvements in local environmental quality come at the expense of deteriorating environmental quality in other regions.

Xiangcheng Zhou. An Empirical Analysis of the Impact of FDI on Environmental Quality in the Beijing-Tianjin-Hebei Region of China. Academic Journal of Business & Management (2024) Vol. 6, Issue 5: 154-164. https://doi.org/10.25236/AJBM.2024.060521.

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