Research On Motivation And Regulation Of Foreign Direct Investment In China Under The Condition Of Environmental Security

Since reform and opening in 1978, China has provided motivating packages for foreign direct investment. Nowadays, motivation and regulation of foreign direct investment all over the world under the condition of environmental security is increasingly prominent.Based on the Theory of Incentives and motivating driver of size effect, structure effect, income effect and technical effect, this paper builds and modifies the model of government motivation of foreign direct investment under the condition of environmental security, concludes the government adopt costs compensation to offer motivation when balancing between rent fetching and efforts of enterprises. Based on New Regulation Theory and regulating driver of size effect and structure effect, this paper builds the model of government regulation of foreign direct investment under the condition of environmental security, concludes the government can give perfect regulation to all enterprises by fixed price contract in terms of complete information and in terms of in complete information, the best regulation makes the enterprises with high efficiency reach efficient effort and commission, while it is opposite to the inefficient enterprises.Analyzing affecting mechanism between goernment motivation and regulation and foreign direct investment, concludes the motivation and regulation of environmental security has negative effect on the inflow of oreign direct investment, but not the main factor. Based on the sorts of motivation, restriction and prohibition of foreign direct investment, empirically analyzing the motivation policies of income tax, environmental security, reinvestment, purchase and region, the regulation policies of law, statute and section rule, concludes the effects of government motivation and regulation are outstanding.At last integrating the experience of USA, Japan and Korea and the facts of China, this paper points out the measures of motivation and regulation of foreign direct investment, which are macro measures of consummating legal system, administrative examination and approval system and strengthening international cooperation; mid-scale measures of improving industry supervision, investment structure and developing guilds; micro measures of intensifying enterprise propaganda, encouraging environmental security protection and punishing environmental disruption.