For evaluating regional sustainable development of Mainland China, this study tries to use the perspectives of economic, environmental, and social dimensions. China is the second largest host of FDI in the world only behind US in 2009. Moreover, China is also the largest developing countries recipient of FDI since 1991. Although economic development in China grew rapidly, environmental pollution increased seriously at the same time. The top ten worst polluted places in the world, there are two cities in China. China is a vast and large land which development is from eastern to western and southern to northern. We separate China into three areas: eastern middle and western. The development process leads to a gap in different regions and unbalanced development situation. Hence, Eleven-Five-Year plan hoped to eliminate the difference between the areas.
The empirical results, based on data obtained from the China Statistics Yearbook of China Statistics Press over the period 2006-2009, show that the optimal demands for origins of FDI in different regions are significantly different. The optimal demands for origins of FDI in different regions are various, and the optimal energy consumption volumes in different regions are various. China should improve the region where energy consumption is over used. Other findings include: (1) The pollution haven hypothesis is only supported by the FDI of overseas Chinese regions in western region; (2) Eastern region is on the later stage of EKC, and middle region is on the early stage of EKC; (3) pollution haven hypothesis may only happen on the early stage of EKC; (4) Funds from HMT overinvested in eastern region whereas it has to invest more in the middle and western region.
The data in this study comes from China Statistic Yearbook of China Statistic Press. In the limitation of data set, the environmental dimension in output variable is just including
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SO2 and Soot. However, the Kyoto Protocol and Copenhagen conference want to control the Anthropogenic Greenhouse Gas, especially CO2. The data is either available in the China Statistic Yearbook nor in the China sustainable Development. If CO2 can be considered in this study, the environmental dimension can be more complete. In addition, banking or insurance industry can be considered and applied in two-stage DEA. The intermediate measure in these two industries may consider the premium income and deposit separately.
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Appendix A Descriptive Statistics in three regions
Variable Area N Mean Std. Dev. Minimum Maximum
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Appendix A Descriptive Statistics in three regions (continue)
Output Area N Mean Std. Dev. Minimum Maximum
GDP per capital
Eastern 52 30,926.218 14,331.046 12,206.038 67,013.659 Middle 24 14,196.497 2,622.947 9,699.045 19,238.992 Western 44 13,683.083 5,279.336 5,582.136 34,174.938 Total 120 21,257.791 13,097.292 5,582.136 67,013.659 Patent
filed
Eastern 52 39,300.154 40,186.302 538.000 174,329.000 Middle 24 11,186.750 6,846.992 2,824.000 27,206.000 Western 44 5,447.045 6,746.551 325.000 33,047.000 Total 120 21,264.667 31,189.049 325.000 174,329.000
SO2 Eastern 52 65.710 48.145 2.100 168.700
Middle 24 79.252 32.383 48.700 146.400
Western 44 66.145 33.416 12.100 138.400
Total 120 68.578 40.352 2.100 168.700
Soot Eastern 52 22.396 16.416 0.800 55.300
Middle 24 36.825 20.587 13.900 84.500
Western 44 19.591 12.432 5.000 50.400
Total 120 24.253 17.166 0.800 84.500
EMP Eastern 52 0.964 0.007 0.949 0.986
Middle 24 0.962 0.004 0.957 0.968
Western 44 0.960 0.003 0.954 0.968
Total 120 0.962 0.006 0.949 0.986
DDCS Eastern 52 508.937 357.287 41.000 1,432.200 Middle 24 355.525 143.615 134.800 518.900 Western 44 191.582 220.122 13.500 1,205.500 Total 120 361.891 310.460 13.500 1,432.200
EDU Eastern 52 0.299 0.116 0.172 0.568
Middle 24 0.228 0.038 0.159 0.274
Western 44 0.198 0.048 0.115 0.275
Total 120 0.248 0.095 0.115 0.568
Note: All nominal variables are deflated by the GDP deflator with 2005 as the base year.