The Empirical Analysis Of Foreign Direct Investment Affecting Environmental Pollution

With the gradual lowering of the entry barrier for foreign investment,more and more foreign direct investment is pouring into China.What’s the impact of this on China’s environment? In order to answer this question,this paper starts from the literature and theory of foreign direct investment and environmental pollution,and analyzes the intermediary effect mechanism of foreign direct investment affecting environmental pollution,from the aspects of technology,capital,industrial structure,competition and scale.Then set up a test equation and construct an empirical model to test and analyze the intermediary effect.The study found that:(1)FDI in China’s provinces and municipalities generally exhibits the characteristics of "more in the eastern region-less in the central and western regions",and there is a gradient transfer phenomenon from the east to the central and western regions;(2)The degree of foreign direct investment of 29 provinces and municipalities in China has shown an upward trend in time.Among them,the level of foreign direct investment in Jiangsu ranks first in each year,and environmental pollution shows a declining trend in time.Among them,Shandong’s sulfur dioxide emissions rank first in each year;(3)Foreign direct investment and environmental pollution have a significant negative correlation,and foreign direct investment has an environmental optimization effect;(4)The spatial correlation coefficient of environmental pollution is significantly positive,environmental pollution has a significant positive externality,and pollution emissions in different regions have a cycle.The promotion effect will eventually lead to environmental degradation in large areas;(5)Through the intermediate variable of technological progress,in the OLS regression,foreign direct investment has an environmental optimization effect,while in spatial regression,foreign direct investment has an environmental degradation effect.It is worth noting that in analyzing the variable of environmental pollution,the spatial correlation cannot be separated,so at this time foreign direct investment eventually deteriorated the regional environment;(6)Through capital stock,market size,tax competition and industrial structure,There are several intermediary variables.FDI in the region has optimized the environment in the region,but FDI in the adjacent region has had a negative impact on the environmental quality of the region.Based on this,the article recommends that the region obtain the purpose of optimizing the environment by attracting foreign investment and promoting foreign direct investment;at the same time,it must actively use intermediary factors such as technology,scale,and structure to contribute to the environmental protection cause;in addition,different governments must actively cooperate,Launch a cooperative game of common development.