Research On Environmental Pollution Effect Of Foreign Direct Investment In Shandong Province

Since the reform and opening up,Chinese provinces and cities have promoted local economy development through foreign investment.According to the China Statistical Yearbook,China’s actually used foreign direct investment rose from US $49.67 billion in 2001 to US $173.48 billion in 2021,and its trade openness has remained above 30 percent.Shandong Province is an important coastal and open province in East China.Its foreign direct investment increased from US $3.62 billion in 2001 to US $21.52 billion in 2021,attracting a total of US $236.96 billion in foreign investment.With the economic development of many places hindered by the COVID-19 pandemic,the actual utilization of foreign investment in Shandong Province exceeded 20 billion U.S.dollars in 2021,ranking first in China in terms of growth rate.Objectively speaking,foreign direct investment can bring positive effects such as expansion of production scale,adjustment of industrial structure,improvement of production efficiency and improvement of technical level,but the negative effects such as environmental pollution can not be underestimated.Now that the economy has entered the "new normal",the concept that clean water and lush mountains are invaluable assets has gained popular support.The old practice of economic growth at the expense of the environment has been corrected,and the "two-carbon target" has become a "hard constraint".The report on the 20 th National Congress of the CPC elevated "modernization of harmonious coexistence between man and nature" to one of the connotations of "Chinese-style modernization",pointing out that China will deepen the battle against pollution with higher standards in the future and promote high-quality economic and social development.In this context,it is necessary to re-examine the environmental pollution caused by foreign direct investment.Shandong Province accounts for 7.22% of the population and 7.26% of the total economic volume of the country(in 2021),while its energy consumption(carbon emission)accounts for 1/10 of the country.It is a typical province with large energy consumption and carbon emission,and the environmental pollution caused by foreign direct investment deserves attention.Theoretically speaking,the three industries all have polluting industries and non-polluting industries,and both polluting industries and non-polluting industries have more or less foreign direct investment.However,it is found that the key pollution sources are mainly concentrated in the secondary industry,and the proportion of foreign direct investment received by the secondary industry is significantly higher than that of the primary and tertiary industries.Therefore,this paper will focus on the "contribution" of foreign direct investment in the polluting industries in the secondary industry of Shandong Province.The thesis includes introduction,five chapters and conclusion.The introduction mainly introduces the background and significance of the topic,summarizes the relevant literature at home and abroad,and puts forward the content,methods and innovations of this research.Firstly,the theoretical basis of the research is explained.Secondly,the present situation of foreign direct investment and environmental pollution in Shandong Province is analyzed,and the classification of key pollution source industries in the secondary industry and the situation of attracting foreign investment are described emphatically.Three effects of environmental pollution,namely scale effect,structure effect and technology effect,are expounded again.Finally,the panel data of Shandong Province from 2005 to 2020 were selected to build a fixed effect model,and the entropy method was adopted to calculate the environmental pollution levels of various industries.The regression analysis was carried out,and the corresponding countermeasures and suggestions were put forward according to the empirical results.The third part is the conclusion.The results show that:(1)there is a significant positive correlation between FDI and environmental pollution in Shandong Province,which supports the pollution paradise hypothesis,that is,FDI will lead to environmental deterioration;(2)The increase of foreign direct investment will lead to the decrease of environmental pollution through the scale effect(GDP).This indicates that Shandong Province has crossed the critical value of "inverted U-shaped" environmental Kuznets curve,is pursuing "green GDP",and gradually cancelling the original extensive development mode.(3)The increase of foreign direct investment will lead to the decrease of environmental pollution through structural effects(STR).It shows that Shandong Province has focused on the introduction of high technology,high knowledge content of the secondary industry related investment.(4)The increase of foreign direct investment will lead to the rise of environmental pollution through the increase of technology effect(TFP).This is related to the bias of R&D investment under different economic development conditions.Therefore,more attention should be paid to the R&D investment field and conversion efficiency of technology in the future.