The Research On Environmental Effect Of Foreign Direct Investment

With the improvement of life quality, people expect better environment and at the same time, pay more attention to the damage of nature, especially caused by foreign investment. The demand of the people for the environmental quality is becoming higher and higher with the improvement of the life quality. People focus more on the environmental damage, especially the foreign investment for the deterioration of the environment. After detailed recalling from the representative research at home and abroad, the paper selected Xiamen as the object. The paper focuses on in-depth analysis for environment effect of foreign direct investment through qualitative and quantitative analysis method.Xiamen, which is called the china's garden on the sea, is famous for its beautiful city environment. However, many pollution-intensive industries settle in Xiamen with the continuous development of the investment and the economy. Does the foreign direct investment deteriorate Xiamen's environment? Does Xiamen meet the "Pollution Haven Hypothesis"? How does the government do the regulation for the environment effect? All these questions caused the writer's thinking.From the qualitative perspective, foreign-invested enterprises accounted for a great proportion of the pollution-intensive industries in Xiamen. Many pollution-intensive industries transferred to Xiamen because of the preferential and liberal environmental standards, which deteriorate Xiamen's air quality and water quality, and so on. From the quantitative perspective, the pollution from the foreign industry is more serious than from the domestic industry. The foreign direct investment in Xiamen, especially the ones that invest in the pollution-intensive industries, cause more pollution and deteriorate Xiamen's environment state. So, both the theoretical and empirical analysis proved that Xiamen had become the "Pollution Haven" of the foreign countries and regions.In another hand, the regulation in Xiamen is not enough. And it can not influence the direct investment of the pollution-intensive industries. The government should play a leading role in the impact of the foreign direct investment to the environment, such as intensify environmental controls, implementing preferential policies to the industry cleaning up the environment. Meanwhile, civil society organizations could be a useful supplement for the environmental protection.