Empirical Analysis Of Foreign Direct Investment And Energy Consumption Of China

Chinese government has taken the construction of a resource-saving and environment-friendly society as the main task in the "11th Five-Year" plan. This shows that the Chinese government has taken note of the need to coordinate the foreign investment in Chinese energy consumption. Foreign businessmen investing in China is with some purpose. Some of the developed countries are aware of the importance of the protection of oil, coal and other energy resources earlier. In this respect, the legal provisions are relatively strict and the emissions standards are higher. So these countries investors can not carry out their own high-energy, high sewage sector investments. The only way for them is to transfer those businesses to the developing countries. At first, this paper will analyze the features of foreign direct investment and energy consumption in China. Then divide 30 provinces, municipalities and autonomous regions into 4 levels according to their foreign direct investment during 1999 to 2003. Finally, make a panel data model to analyze the relationship between the FDI and energy consumption of China. And will also give some policy recommendations according to the analysis of results.