Analysis On Environmental Pollution Effect Of Foreign Direct Investment

Since the reform and opening up 40 years ago,the social economy has developed rapidly,especially after China joined the world trade organization(WTO).After the "One Belt And One Road" initiative was put forward in 2013,countries along the "One Belt And One Road" have joined the initiative and actively participated in the construction of "One Belt And One Road".Since then,China’s economy has been more and more open,and more and more foreign direct investment has been "introduced" and China’s outbound investment has "gone global".Foreign direct investment,on the one hand,will greatly promote the economic growth of the host country and produce the spillover effect of advanced management experience and production technology on the industrial development of the host country.On the other hand,the inflow of FDI may also aggravate the environmental pollution of the host country by transferring the industries with high pollution and high energy consumption to the host country.In recent years,with the improvement of the living standard of the public,the public awareness of environmental protection,environmental protection issues began to be taken seriously.There are also heated discussions about the relationship between economic growth and environmental pollution,the relationship between fiscal revenue and expenditure and environmental pollution,the relationship between official promotion and environmental pollution control and so on.A discussion from the perspective of foreign direct investment in this study,in Guangdong and Guangxi Zhuang autonomous region,for example,trying to explore the developed region and undeveloped region environmental pollution effect of foreign direct investment,trying to decompose the different development degree of regional environmental pollution effect of foreign direct investment as the scale effect,structure effect and technology effect,and examine whether the effect of three kinds of environmental pollution effect of foreign direct investment have a threshold effect.Based on the statistical data of 35 prefecture-level cities in Guangdong and Guangxi from 2003 to 2017,this study firstly introduces relevant theories and analyzes the research status.Secondly,the present situation of foreign direct investment and environmental pollution in Guangdong and Guangxi is analyzed.Once again,the influence of scale,structure and technical effects on the relationship between foreign investment and environmental pollution is preliminarily judged by the benchmark regression.Finally,the environmental pollution effect of fdi is further decomposed and analyzed by threshold regression model.For the division of developed regions and less developed regions,on the one hand,the research samples are divided into Guangdong samples and Guangxi samples according to the provincial administrative divisions.On the other hand,it breaks the constraint of traditional provincial administrative division and divides the city into high-development city,medium-development city and low-development city according to the social and economic development of the city.Because even in the same provincial administrative division,there is a big gap in the development of cities,it is impossible to more clearly decompose the environmental pollution effect and threshold effect of foreign direct investment in cities with different development levels,which further guarantees the rationality and scientificity of this study.Through the research,it is found that :(1)the total samples significantly support the pollution halo hypothesis.(2)the technological threshold of highly developed cities is significant.Under the influence of technological threshold,the increase of foreign direct investment is conducive to the improvement of environmental pollution.(3)under the scale effect,there is a u-shaped relationship between FDI and environmental pollution in mid-developing cities,that is,the level of environmental pollution decreases first and then increases with the increase of FDI.(4)the structure effect of low-development cities is significant,and there is an inverted "N" type relationship between FDI and environmental pollution,that is,the environmental pollution level increases first,then decreases,and then increases with the increase of FDI.(5)under the scale effect,there is a significant positive correlation between FDI and environmental pollution in Guangdong,but the rate of worsening environmental pollution has slowed down.(6)under the scale effect,there is an inverted "N" type relationship between FDI and environmental pollution in guangxi,which significantly supports the pollution paradise hypothesis.(7)under the technology effect,there is an inverted "U" type relationship between fdi and environmental pollution in Guangxi,which significantly supports the pollution paradise hypothesis.In order to solve the problem of environmental pollution caused by foreign direct investment in cities with different development levels,this study finally puts forward policy Suggestions for cities with high,medium and low development levels.