direct investment (FDI) activities. We next take advantage of China's 11th Five-Year Plan as a quasi-natural experiment …, which imposed different pollution reduction targets across provinces, and examine its impact on firm-level FDI activities … policy endogeneity, missing variables, and expectation effect issues, which provides positive support for the pollution haven …

"'The authors make some very critical interventions in this debate and scholars engaged in the environmental pollution ….' -Ronald Mitchell, University of Oregon. China has earned a reputation for lax environmental standards that allegedly attract …