Study On China’s IFDI, Marketization And Environmental Pollution

FDI has played an important role in promoting China’s economic development. But in recent years, the FDI investment in areas, whether gross industrial output value or practitioners indicate that the pollution industry especially the high pollution industry is an important field of FDI investment. The foreign direct investment situation threat our survival environment seriously, so we need to study the negative effect of the ecological environment caused by FDI in China in theoretical and empirical research and analysis, it has a very important theory value and practical significance.Firstly, this paper overall analyses the development of foreign direct investment and ecological environment since China’s reform and opening up Since the reform and opening up, foreign direct investment into China has played a pivotal role in promoting China’s economic development. But at the same time, China’s environmental situation is also deteriorating. Since1990, the output of FDI’s enterprises in industrial has continued to improve. From the industry structure, foreign direct investment tends to choose a higher level of manufacturing emissions. Since2000, the proportion of foreign direct investment in the manufacturing sector increased year after year, foreign investment in2008reached$49.89billion, among which manufacturing sector is quite high, however, due to the excessive pursuit of national serious, foreign direct investment caused environmental pollution and other hazards. In fact, since the reform and opening up, the impact of foreign direct investment on environmental pollution has always existed, analysis of the level of foreign direct investment and industrial "three wastes" emissions is not difficult to find, the scale of China’s actual use of foreign investment and industrial waste (industrial waste water, industrial waste gas and solid waste) there is a certain link between emissions. There is a positive correlation between industrial emissions, especially solid waste emission. In2000, China’s actual use of foreign investment in the rapid development, followed by a substantial increase in China’s industrial waste gas and solid waste emissions. This observation and conclusion of the article is a basic empirical research consistent.Secondly, the article uses eviews6.0to analyze foreign direct investment in China’s development process from1985to2012and the status of industrial waste pollution by empirical analytical methods, analytical method for the unit root test, cointegration test and granger causality test results obtained. From which we find out that FDI and industrial solid waste is granger cause to each other, so our country’s FDI does cause ecological damage conclusions.Thirdly, because FDI is the foundation of our industrial solid waste emissions Granger reason, this paper introduces market index of30provinces from1998to2009to study whether the effects of FDI to the environment pollution depend on the municipalities market index in various provinces. By using eviews6.0on inter-provincial panel data analysis, the unit root test and cointegration test, regression analysis, we find the relationship among them:the amount of FDI of the provinces increased to some extent the industrial environment emissions, but this affected to varying degrees in different market. In addition to a lower degree of market provinces (Gansu, Ningxia, etc.), the degree of market-oriented FDI in the provinces of environmental pollution has played a certain role.Finally, based on the above analysis, the article bring out some targeted suggestions. China should constantly absorb favorable foreign investment, give full play to the role of foreign investment in promoting China’s economic development, while pay full attention to the impact of foreign investment on the ecological environment. From national government level, we should make appropriate adjustments to the strategic of foreign investment, optimize the industrial structure and FDI investment, guide and adjust the geographical distribution of foreign direct investment, improve the development of international standards and foreign environmental laws and regulations and the establishment of an environmental tax collection mechanism. And for the local governments, they should not only pay attention to the introduction of foreign short-term interests, they should also stress on its possible impact on the environment, and strengthen the supervision of foreign investment, control the environmental pollution caused by foreign capital strictly, and improve the level of marketization of each province.