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In this paper, we investigate the relationship between economic growth and industrial pollution emissions in China using data for 112 major cities between 2001 and 2004. Using disaggregated data, we separate foreign direct investment inflows from Hong Kong, Macao, and Taiwan from those of other foreign economies. We examine two industrial water pollution indicators (wastewater and petroleum-like matter) and four industrial air pollution indicators (waste gas, sulfur dioxide, soot, and dust). Our results suggest that most air and water emissions rise with increases in economic growth at current income levels. The share of output of domestic- and foreign-owned firms increases several pollutants in a statistically significant manner while output of firms from Hong Kong, Macao, and Taiwan either reduces pollution or is statistically insignificant. [ABSTRACT FROM AUTHOR]

With the increase of global integration, the peri-urban area (PUA) of megacities in Asia has become a favourite destination for foreign direct investment (FDI). This paper uses the PUA of Shanghai as a case study to investigate the impact of global forces on the urban expansion of the city, and the link between urban growth and sustainable development in this mega-urban context. Shanghai has grown impressively during the past two decades in terms of economic and physical transformation. Much of this transformation has rested on the unbridled exploitation of land and other environmental resources in its peri-urban area. This is characterised by the designation of development zones and the concentration of manufacturing FDI, resulting in dispersed growth and environmental degradation. The disruption of the physical environment, combined with the concentration of the urban poor in these areas (in particular ‘temporary migrants’), has turned the PUA into a potential crisis point threatening the social and economic development of the city. [ABSTRACT FROM AUTHOR]