The Study On The Impact Of Foreign Direct Investment On The Pollution Of Three Industrial Wastes In China

Since the reform and opening up,transnational capital has been more and more active in the world.Foreign direct investment in China has greatly promoted China’s economic development.At the beginning of reform and opening up,foreign investment played a significant role.However,with the improvement of China’s productivity and the change of economic structure,the two sides of foreign investment to China’s economy are becoming increasingly obvious.At present,the continuous growth of the foreign direct investment shows that the Chinese economy is gradually maturing,but international investment protectionism is beginning to rise,and the world structure is beginning to change.It is an urgent problem for China to make scientific plans to improve the quality of attracting foreign investment.In China,the deterioration of ecological environment and air pollution,such as the haze in North of China,have a serious impact on the health and life of local people.In addition,surface water such as rivers and lakes has also been polluted to varying degrees.As a factor of production,foreign direct investment flows around the world,breaking the boundaries among regions,nations and countries,and deepening the market order.The distribution of FDI in China is extremely uneven,FDI is mainly concentrated in the coastal economic developed areas and the central big cities,and the pollution situation is complex.Various signs show that there is an inseparable relationship between environmental pollution and economic development.Grossman and Krueger(1991)put forward the famous environmental Kuznets theory,that is,there is an inverted U-shaped relationship between environmental pollution and economic development:environmental pollution will rise first and then fall with economic development.In recent years,China has begun to pay attention to environmental issues,energy conservation and emission reduction,waste classification and other policies emerge in an endless stream.Under such an background,it is of practical significance to study whether FDI has a positive effect on China’s environment.What are the environmental effects caused by the different distribution of FDI in different regions of China?Does FDI bring technological effects and improve the environment?Has China become the "pollution paradise" of developed countries?Based on the above problems,this paper takes "three industrial wastes",which are industrial waste gas emission,industrial waste water emission and industrial waste solid production as the research object.This paper selects the relevant panel data of 30 provinces and autonomous regions in China,based on the idea of He Jie(2006)environmental effect and theoretical analysis,and establishes a four equation simultaneous equation on environmental effect,and studies the impact of FDI on China’s environment.This paper focuses on the detailed analysis of regional environmental conditions and FDI conditions,and quantifies the environmental pollution degree of FDI to each region.The innovation of this paper lies in the introduction of energy consumption per unit GDP as a variable,in addition,using Douglas production function to calculate the technical level.The paper is divided into six chapters.The first chapter is the introduction,which explains the research background and content,then introduces the literature review at home and abroad,describes some influencing factors of previous studies on environmental pollution,as well as the relationship between FDI and environmental pollution,and finally puts forward innovation points and shortcomings.The second chapter is the theoretical basis.In the first half,the related theories of FDI and environmental pollution are stated and analyzed,including the mainstream "pollution paradise hypothesis" and "pollution shelter hypothesis".The second half is the analysis of the impact mechanism of FDI on the environment,which includes scale effect,structure effect,technology effect and environmental regulation effect.The third chapter is divided into two parts.The first part describes the overall situation of FDI in China in recent years with charts,and then introduces the regional situation of FDI in the East,the middle,the West and the northeast.The second part describes the environmental quality situation,past and future trends in China in four regions,and draws the corresponding conclusions.The fourth chapter is empirical analysis.First of all,on the basis of existing research,environmental regulation is added as an important influencing factor,a set of equations is established,and energy consumption per unit GDP is added as a variable to improve the factors of structural effect and technical effect.The panel data of 1997-2017 in 30 provinces and autonomous regions of China are selected,and the least square method(LS)is used to analyze the data of China as a whole and four regions(East,China,the west,the northeast)carried on the empirical analysis,carried on the numerical quantification to the pollution degree.This paper finally obtained the FDI inflow overall worsened our country’s environmental condition,the "pollution paradise" hypothesis was established in our country.However,from the perspective of different regions,some regions are at the critical point of inflection point,and FDI will have a positive effect on the environment;some regions are on the left side of inflection point,and FDI will continue to aggravate environmental pollution.The fifth chapter is the summary and countermeasures.Firstly,it introduces the impact of FDI on China’s overall and regional environment.Finally,based on the conclusions of this study,it puts forward countermeasures and suggestions.In this paper,the research object,data selection and research methods are innovative.1.The industrial waste gas discharge,industrial waste water discharge and industrial waste solid production are selected as the research objects to show the pollution degree of the region in an all-round way.2.In terms of data,the panel data of 30 provinces,cities and autonomous regions from 1997 to 2017 are selected,which covers a large time span and a wide geographical range,making up for the shortcomings of the micro level.3.In the research method,we use the method of simultaneous equation to decompose the effect of FDI on the environment into scale effect,structure effect,technology effect and environmental regulation effect.In addition,it also makes a horizontal comparison and a vertical comparison,analyzes the differences in the impact of FDI on the environment in various regions,and enriches the understanding of FDI and environment.