FDI Spillovers, Environmental Pollution and Energy Consumption Intensities, and Industries’ Productivity

　　Using the correlated data of 28 Chinese manufacturing industries during 1999-

　　2008, this paper examines the effects of the foreign direct investment, which is

　　distinguished as horizontal, forward linkage and backward linkage spillovers,

　　and environmental pollution and energy consumption intensities on industries’

　　productivity. The empirical results show that FDI spillovers are more likely

　　existing in the vertical linkages across industries rather than horizontal linkages

　　and environment pollutions and energy consumption do have disadvantages on

　　industry’ productivity even we use different industries’ productivity measures and

　　give emphasis to the endogeneity problem of these variables. We link this result

　　with abatement efficiency of industries’ physical capital intensive and demonstrate

　　that the most environmental pollution emission and energy intensive industries are

　　likely to be less efficient and therefore relatively lower industries’ productivity.

　　Further study suggests that horizontal FDI spillover decreases the emission of

　　environment pollution emission and energy consumption intensities though

　　vertical FDI spillovers have limited effect on them.