An Empirical Study On The Impact Of Two-Way FDI On China’s Carbon Emissions

Over the past 40 years of reform and opening up,China’s economic development has made remarkable achievements,and the degree of opening up is also increasing.Especially in recent years,with the country vigorously implementing the strategic policy of "bringing in" and "going out",the scale of China’s Inward Foreign Direct Investment(IFDI)and Outward Foreign Direct Investment(OFDI)has been expanding,which has become a global two-way investment country and has an important influence on the world economic development.China’s economic strength is constantly improving,However,on the ecological environment has also caused some negative effects that carbon dioxide emissions continue to rise.In 2006,China’s emissions of carbon dioxide dominated greenhouse gases exceeded that of the United States,becoming the world’s largest emitter of carbon dioxide.Since then,carbon emissions have reached new highs.However,with the development of low-carbon economy in China,the growth rate of carbon emission gradually has been slowed down and China is still facing enormous pressure of carbon emission reduction.Therefore,under the background of China’s two-way FDI becoming more and more important to economic development,and the urgent task of carbon emission reduction,it is of great significance to study the impact of two-way FDI on carbon dioxide emissions,whether China can achieve economic transformation and fulfill the emission reduction commitment.This paper selects the panel data of 30 provinces,municipalities and autonomous regions in China from 2004 to 2017,and the carbon dioxide emissions of each region was calculated.At the same time,taking per capita GDP,the degree of opening up,industrial structure and other control variables as control variables,a twoway fixed effect model is established to empirically analyze the carbon emission effect of two-way FDI in China.Meanwhile,it analyzes the regional heterogeneity of the model,and uses the interaction between environmental regulation and IFDI and OFDI to investigate the regulatory effect of environmental regulation.The results of empirical analysis show that IFDI has a restraining effect on China’s carbon emissions,while OFDI has a promoting effect on China’s carbon emissions,and the phenomenon of "pollution shelter" in China’s environment is not established.There are also differences in the impact of two-way FDI on carbon emissions in different regions.The carbon emission reduction effect of eastern region IFDI is stronger than that effect of central region IFDI,and the carbon emission reduction effect of western region IFDI is the weakest and not significant;the enhancement effect of OFDI on carbon dioxide in eastern region is the strongest,followed by central region,and the last in western region.As for the regulatory effect of two-way FDI,with the increase of the intensity of environmental regulation,IFDI will restrain carbon dioxide emissions,and OFDI will reduce the increase of carbon emissions.Finally,based on the results of empirical analysis and the status quo of China’s two-way investment and domestic carbon emissions,this paper puts forward policy recommendations in line with the national conditions.