Research On Trans-boundary Pollution Industry Transfer And The Environmental Welfare Effects Of Attracting FDI

With environment protect consciousness intensified , Capital flow and environment protection problems become more and more important, so they draw all over the world people attention. Foreign Direct Invest (FDI) flows into developing countries, on one hand, it may promote the country's economic level, but at the same time, it pays more pressure on environment, especially Trans-boundary Pollution Industry Transfer problem. In the 1980s, the Eastern Coastal Areas of china accept developed countries or areas to transfer their industries through attracting FDI, which include some Pollution-intensive industries (PIIs), such as Chemicals Industry, energy source industry, rubber industry, plastic industry, curry industry, spin industry and so on. They make the location environment and social Welfare suffer greatly negative Effects. On account of above appearance, it is necessary to research the relationship of Trans-boundary Pollution Industry Transfer and the Environmental Welfare Effects of Attracting FDI.On the basis of the former researches in both domestic and abroad, I will employ theoretical analysis and empirical analysis to further research this question. The thinking route of this paper is: theoretical analysis(including the definition of Trans-boundary Pollution Industry, transfer motivation, transfer reason, transfer forms,features and location choice)——empirical analysis(On one hand, through taking theEastern Coastal Areas of china for example, the paper examine the hypothesis of "pollution haven". On the other hand, examine the impacts of FDI on environmental pollution.)——corresponding countermeasures and suggestion.This paper is divided into five parts:Chapter one is introduction. In this section, the subject of the study is offered through generalizing the research of Trans-boundary Pollution Industry transfer. And the confine of the study is fixed. Also theoretic and practical significance of this study is discussed.Chapter two is the theoretical reviews. In this section, the theories of Pollution Industry transfer are reviewed as the theoretical base of the study. One is the determinism theory of the Externalities and comparative advantages of Pollution Industry. Another is the industry transfer theory, it can explain the general rule and particularity of pollution transfer. The last part introduce the theory of race to bottom and the hypothesis of "pollution haven", which is the main theory to explain the relationship of FDI and Pollution Industry transfer.Chapter three is the mechanism of Pollution Industry transfer. In this section, we will give the definition of Trans-boundary Pollution Industry, and discuss Pollution Industry transfer motivation, transfer reason, transfer forms, features and location choice. This section is the keystone and main innovation of the study.Chapter four is empirical analysis. In this part, the main task is to examine the hypothesis of "pollution haven" through taking the Eastern Coastal Areas of china for example. It analyses FDI structure in Trans-boundary Pollution Industry, whichinclude invest scale, invest source and invest fashion. Based on it, we set up a simple model to examine the correlativity in pollution variation (waste water, exhaust gas and waste residue) between domestic gross industrial output value and FDI gross industrial output value. The result indicated that the correlativity in pollution variation and the FDI gross industrial output value is negative, and it proves that Pollution Industry indeed transfer to Eastern Coastal Areas through attracting FDI.In the chapter five, I mainly introduce the impacts of FDI on environmental pollution, especially in Pollution-intensive industries.In the chapter six, I make a prediction on the tendency of trans-boundary Pollution Industry transfer and gives out several corresponding countermeasures and suggestion for china.