This paper examines the effect of host-location financial development (HFD) on foreign direct investment (FDI) in 166 Chinese cities between 2003 and 2009. Using pooled panel and generalized two-stage least square estimators, we find a complementary HFD-FDI nexus, and that this is particularly...

This paper presents a two-sector green endogenous growth model to explore a mechanism that explains why carbon-intensive capital is not necessarily shut down during transition to a green economy. Without accumulating clean capital to offset carbon emissions, a tightening of climate regulation...