Study On The Influence Of FDI Quality On China 's Environmental Pollution

With the accelerated process of economic globalization, the capital began to flow in the range. Due to various reasons of China’s vast market, cheap labor and rich resources, China’s foreign direct investment is more and more. Foreign-funded enterprises compensate for the China’s capital and foreign exchange gap, promote the process of the market, accelerate the development of the economy.However, environmental pollution incidents frequent occurrence and serious contradiction between supply and demand of resources make people begin to think about the role played by the deep-seated reason and enterprises with foreign investment in which. Thus, the relationship between FDI and pollution caused more and more scholars interested in the study. Because of the different research methods and research perspectives, scholars have not reached a consensus. It is worth noting that, in previous studies, there is a hypothesis that all foreign capital is homogeneous. It is clear, foreign enterprises of Europe and America and foreign companies in Hong Kong, Macao and Taiwan in terms of technical strength, management methods and organizational forms is different, so the same country (region) producing the effect can not be the same. Here, we introduce foreign direct investment (FDI) heterogeneity assumption. Specifically, this paper is on the basis of Copeland-Taylor trade model, through FDI quality parameter, the analysis of the mechanism of the effect of the quality of FDI to the pollution of the environment, and combined with the Chinese provincial panel data, using the ordinary panel regression and threshold regression method, to make an empirical study of the relationship between environmental pollution and the quality of FDI.The results of the regression of the common panel show that the improvement of FDI quality will contribute to the improvement of China’s environmental pollution, but there are regional differences in the impact of different FDI quality indicators on environmental pollution. Specifically, in terms of scale and technical quality of FDI significantly promotes the environmental quality level of ascension, measured from the profit and exports of FDI quality does not have a significant impact; for the eastern region, to measure the export scale and quality of FDI effect coefficient is significant, and the other two parties was not significant; for the central and western regions, from technology to measure the quality of FDI also on environmental pollution reducing has obvious role in promoting, three other aspects of the impact is not significant. Threshold regression results show that, with the local human capital and R & D level to enhance the quality of the environment to improve the role of FDI will gradually increase.