Plausibly Exogenous [1516] - Inbound FDI (03/27/2024)
LHS Variable
Inbound FDI
RHS Variable
Environmental regulation
Source of Exogenous Variation
Two Control Zones (TCZ) policy implemented by the Chinese government in 1998, in which tougher environmental regulations were imposed in TCZ cities but not others
- Cai, Lu, Wu, and Yu (2016), “Does environmental regulation drive away inbound foreign direct investment? Evidence from a quasi-natural experiment in China”