Research Of The Effects Of Foreign Direct Investment On China's Ecological Environment

With the strengthening trend of the world economic globalization, Foreign Direct Investment (FDI) demonstrates a prodigious development recently, FDI has become an significant force and factor that influence China and other developing countries'economic development. In order to realize sustainable development at present stage, China puts forward the goals of building an environment-friendly society and a low-carbon economy. Under the guidance of this strategy, it is practically significant to study the effects of FDI on ecological environment in-depth and systematically. In the beginning of China's reform and opening up, due to China's longing for capital ,it concealed FDI's negative effect on Ecological Environment. Therefore, the viewpoint of this paper is based on China's adjustments to its economic developmental stage in evolution and actions to the needs posed by the shifting of strategic objectives. Under the background of coordinated development with FDI, comprehensively analysis should be made on the effect of FDI on China's ecological environment in the purpose of pursuing maximum positive impacts and minimum negative impacts.Concentrating on FDI's effect on China's ecological environment, firstly this paper provide theoretical basis of FDI's ecological environment as the research approach, then the paper focus on the formation mechanism of FDI's ecological effect in terms of the scale and the structure of investment as well as the technical level, expounding alongside with the reality meaning of FDI's ecological impact in aspect of investment scale, investment structure, investment areas and investment objectives. After that, providing empirical test between FDI and ecological environment with the statistics of China whole country, we can get these conclusions as fellows: (1)FDI is the Granger cause of industrial waste solid and industrial waste water, but FDI is not always the Granger cause of industrial gas.(2)The trend curve between FDI and ecological environment appears to be U-shaped features.(3)FDI is certain to cause environmental deterioration, and so called"Pollution Heaven Hypothesis"is exist in China indeed. Finally the paper promotes to construct a platform that the FDI and ecological develop coordinately in terms of culture, standards, policies, supervision and international cooperation etc, switching FDI to be one of the driving force that push forward China's economy soundly, rapidly and cleanly.