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Author(s): |
Zhihua Lai, School of Economics and Trade, Shijiazhuang University of Economics, SUE, Shijiazhuang, China, 050031;School of Statistics, Central University of Finance and Economics, CUFE, Beijing, China, 100081
Bifeng Wang, School of Economics and Trade, Shijiazhuang University of Economics, SUE, Shijiazhuang, China, 050031;School of Economics, Liaoning University, Shenyang, China, 110036 |
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Abstract: |
In this paper, by using the co-integration analysis of the vector system, the long-run equilibrium and short-run error correction relation among carbon emissions, foreign direct investment and value added of industry in Hebei province during 1985-2009 are analyzed. The results of the study show that: the first order difference of the logarithm form of the three series is steady. And the Johansen tests also show that there is the only co-integration relationship among the three series. To be specific, along with the development of industrial economy in Hebei province, every 1% increase in the industrial output, carbon emissions will increase 0.7346%; and every 1% increase in foreign direct investment will cause carbon emissions to increase by 0.016%. For adjustment coefficient matrix, the foreign direct investment tends to adjust in the same direction, but not statistically significant. Carbon emissions and value added of industry tends to adjust in reverse direction, correction coefficient were-0.6871 and 0.8088 respectively. In addition, Granger causality test shows that foreign direct investment and industrial added value of Hebei province will come into dynamic transmission path to the carbon emissions after 6 issue lagging. While value added of industry and the foreign direct investment are not the Granger reason for each other. The indirect dynamic transmission mechanism is of great inspiration to carbon emission reduction by way of reasonably adjusting foreign direct investment and industrial economy.
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