A Study On FDI, Economic Growth And Environmental Quality Of China

This dissertation studies the relationship between economic development and environmental quality, and the impact on this relationship by FDI and other elements in China. Many scholars define the Environment Kuznets Curve Hypothesis to postulate an inverted-U shaped relationship between per capital income and different pollutants. Making use of econometrics, the paper investigates the relationship between industry pollutants and economic growth in China, which is to provide suggestions to introduce"High quality"FDI for next stage.Firstly, the dissertation illustrates the economic causes of environmental problems and the categories of economic development and environment relationships. These lead to the conclusion that EKC is one kind of the relationships between economic development and environmental quality. Then, the dissertation shows and analyzes formation theories of EKC, and also analyzes the influence mechanism theory of EKC, accounts for population, industrial effect to EKC earthily. Depicting the current situation of environment in China gives academic and realistic explanations of FDI influence to economic development and environmental quality in both positive and negative perspectives. Moreover, the dissertation selects province-panel data in environment and economy of China, sets up econometric model about economic growth and industry pollutants (namely, waste water, waste gas and solid waste), and illuminates that these is EKC relationship between industry pollutants and per GDP. Furthermore, the result of the empirical analysis would be used as proof to explain the effect of FDI, economic development to environmental quality.Finally, the following suggestions are given to make every advantages of FDI to enhance our economic development, and to suppress the disadvantages of FDI environmental effect as soon as possible: first to adjust the strategies of attracting FDI, secondly to increase the environmental protection investment and to optimize industrial structure, thirdly to improve environmental legislations and environmental standards in the scientific and technological content, and lastly to intensify environmental protection law enforcement.