The Impact Of China’s OFDI On Environmental Pollution Of Domestic Enterprises

With the continuous development of China’s market economy,China is also actively exploring overseas markets.In 2003,China’s OFDI flow was only 2.85 billion US dollars,and the stock was 33.2 billion US dollars,accounting for 0.54% and 0.36% of the global flow and stock respectively.In recent years,with the further improvement of China’s opening up to the outside world and the government has successively promulgated some policies that are conducive to enterprises "going out",China’s OFDI investment has also increased significantly.The continuous growth of China’s foreign direct investment fully reflects the increasingly strong economic strength of China.However,with the continuous economic development and the continuous growth of foreign direct investment,the problem of environmental pollution is also brought,which has a negative impact on the ecological environment and people’s health.The report to the 19 th National Congress pointed out that the contradiction between the people’s ever-growing needs for a better life and unbalanced and inadequate development has become a major contradiction in Chinese society,and that accelerating the reform of the ecological civilization system and building a beautiful China are the urgent needs of the Chinese people.In order to improve people’s lives and meet their high environmental requirements,green economic development is urgent.Although the current academic research on OFDI is very rich,the literature on the relationship between OFDI and environment is very limited,and most of it focuses on the impact of OFDI on the environment of the host country,and the literature on environmental pollution of enterprises in the home country is even less.Therefore,this paper makes use of enterprise-level data to study the relationship between OFDI and home environment,and tries to explore the following questions: What impact will OFDI of Chinese enterprises have on environmental pollution of Chinese enterprises? And in what ways does that happen?Based on the existing research results,this paper will analyze the development of foreign direct investment and environmental pollution from the point of view of the home country and study whether the two sides are related.Then it makes a basic assumption on the theoretical level,and conducts a theoretical analysis between OFDI and the ecological environment of the home country.It is concluded that OFDI will have an impact on the ecological environment of the home country through the productivity effect and scale effect of enterprises.Next,this paper explores how these two approaches have an impact.In the link of empirical analysis,this paper uses the combined data obtained from the database of China Industrial Enterprises,the database of China Industrial Enterprises’ pollution Emission and the Directory of China’s overseas investment enterprises from2004 to 2013,and uses the PSM-DID model to conduct an empirical test.Through the empirical results learned that Chinese enterprises foreign direct investment to the whole country ecological environment influence is negative,namely enterprise foreign direct investment can cause greater burden on our country environment,the enterprise’s productivity effect estimates of the coefficient is negative,the estimated coefficient of scale effect is positive,and the latter effect is greater than the former.Finally,based on the conclusion of this paper,this paper puts forward countermeasures and suggestions.