{"title":"The impact of environmental regulations and foreign direct investment on industrial structure upgrading","authors":"Yuanping Zhao , Chunfeng Shen , Cheng Han","doi":"10.1016/j.frl.2025.107004","DOIUrl":null,"url":null,"abstract":"<div><div>This study investigates the influence of environmental regulations, foreign direct investment (FDI), and their interplay on the advancement of industrial structure, utilizing panel data from 284 prefectural-level cities spanning the years 2008 to 2021. The findings reveal that both environmental regulations and FDI exert individual effects on the industrial structure, while also jointly imposing a notable negative impact through their interaction. Furthermore, heterogeneity analysis demonstrates that these effects are more pronounced in the eastern region. Additionally, it is observed that environmental regulations significantly contribute to the upgrading of the industrial structure by fostering an increase in the number of green patents awarded.</div></div>","PeriodicalId":12167,"journal":{"name":"Finance Research Letters","volume":"76 ","pages":"Article 107004"},"PeriodicalIF":7.4000,"publicationDate":"2025-02-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Finance Research Letters","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1544612325002685","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
This study investigates the influence of environmental regulations, foreign direct investment (FDI), and their interplay on the advancement of industrial structure, utilizing panel data from 284 prefectural-level cities spanning the years 2008 to 2021. The findings reveal that both environmental regulations and FDI exert individual effects on the industrial structure, while also jointly imposing a notable negative impact through their interaction. Furthermore, heterogeneity analysis demonstrates that these effects are more pronounced in the eastern region. Additionally, it is observed that environmental regulations significantly contribute to the upgrading of the industrial structure by fostering an increase in the number of green patents awarded.
期刊介绍:
Finance Research Letters welcomes submissions across all areas of finance, aiming for rapid publication of significant new findings. The journal particularly encourages papers that provide insight into the replicability of established results, examine the cross-national applicability of previous findings, challenge existing methodologies, or demonstrate methodological contingencies.
Papers are invited in the following areas:
Actuarial studies
Alternative investments
Asset Pricing
Bankruptcy and liquidation
Banks and other Depository Institutions
Behavioral and experimental finance
Bibliometric and Scientometric studies of finance
Capital budgeting and corporate investment
Capital markets and accounting
Capital structure and payout policy
Commodities
Contagion, crises and interdependence
Corporate governance
Credit and fixed income markets and instruments
Derivatives
Emerging markets
Energy Finance and Energy Markets
Financial Econometrics
Financial History
Financial intermediation and money markets
Financial markets and marketplaces
Financial Mathematics and Econophysics
Financial Regulation and Law
Forecasting
Frontier market studies
International Finance
Market efficiency, event studies
Mergers, acquisitions and the market for corporate control
Micro Finance Institutions
Microstructure
Non-bank Financial Institutions
Personal Finance
Portfolio choice and investing
Real estate finance and investing
Risk
SME, Family and Entrepreneurial Finance