The Impact Of Chinese Enterprises’ Outward Foreign Direct Investment On Environmental In Home Country

Since China put forward the "One Belt And One Road" initiative in 2013,China’s direct investment in countries along the "Belt and Road" has continued to grow.However,the increase of China’s investment in countries along the "Belt and Road" will inevitably lead to the change of China’s demand for factors.At the same time,the problems of environmental pollution in our country are still very serious,and its pollution has seriously disturbed people’s health and life.Although the academic studies on OFDI in developed countries are not outstanding,there are still relatively few studies on OFDI in developing countries,and most of the studies are about the impact of FDI on the environment of the host country,and there are very few literatures on the environmental pollution of the home country.And domestic and foreign scholars have conducted a large number of studies on "One Belt And One Road" OFDI,there are few literatures related to the environmental level.Therefore,this paper devoted to analyzing the impact of China’s OFDI on the environment of the countries along the "Belt and Road" on the home country from the environmental level,and tries to answer the following questions: Will China’s OFDI on the countries along the "Belt and Road" significantly improve the local environmental pollution in China? What are the mechanisms and channels through which OFDI influences China’s environmental pollution?Based on previous studies,this paper makes a comprehensive and in-depth theoretical and empirical analysis about the impact of OFDI on environment.First,the relevant theories were reviewed,and the specific channels of OFDI’s influence on environmental pollution were analyzed through two mechanisms of industrial transfer and reverse technology spillover.Second,in the empirical study,the data of enterprises’ foreign investment in "One Belt And One Road" countries along the "Belt and Road" and the environmental pollution data of prefecture-level cities are used to establish a panel fixed effect model to empirically test the impact of enterprises’ OFDI on the environment of home countries along the "Belt and Road".The main conclusions are as follows: First,the OFDI of Chinese enterprises in the countries along the "Belt and Road" can reduce the local environmental pollution in China.Second,through the heterogeneity analysis,when the parent company invested in large-scale cities and made cross-border mergers and acquisitions,the improvement effect of OFDI on the home country environment caused by the three pollution sources of the countries along the routes is more obvious.The investment in developing countries has improved the environmental problems caused by the three sources of pollution,but has not improved the pollution problems caused by industrial sulfur dioxide in developed countries.Third,through the mechanism test,some industrial enterprises in China have transferred to developing countries,which has reduced the environmental pollution problem in China to a certain extent.Enterprise of reverse technology overflow to improve our country enterprise production,technology,energy distribution and efficiency as well as rich experience in environmental management,and improve the local environment quality level,but the samples of this effect is not obvious,probably because the culture between China and countries along the distance and economic factors such as the distance to a certain extent,have the effect of the block.Fourth,the empirical results of this paper are still robust when control variables are changed,policy effects are removed,and endogeneity is considered.Final,based on the relevant theoretical basis and empirical results,this paper proposes relevant countermeasures and suggestions: continue to promote the construction of green "One Belt And One Road",and further promote the stable and long-term implementation of "One Belt And One Road" initiative;Implement differentiated OFDI city scale development strategy and choose the best OFDI mode according to the enterprise’s own advantages;Encourage technology-seeking foreign direct investment to enhance China’s OFDI reverse technology spillover conduction and absorption capacity;We should strengthen the overall supervision of multinational companies,formulate unified environmental protection standards for parent and subsidiary companies,prevent the transfer of polluting industries in the process of foreign investment,and maintain the image of China as a major country in environmental protection.