The Impact of Outsourcing on Pollution: Evidence from China

Weather outsourcing from developed countries has a positive or negative effect on developing countries' environment has been a major issue from academic and practical points of view.We investigate the impact of outsourcing on the environment in China by utilizing the industrial panel data.We find that outsourcing and pollution exhibit significant negative relationship.The paper gives out the results of scale effect,composition effect,technical effect and factors endowment hypothesis in China.