The Research On The Impact Of FDI To China Sustainable Development

Economic globalization has become the mainstream of world economic development. The result of economic globalization is the rapid development of international direct investment. Followed by inflow of FDI, the international environmental issues appear, such as the greenhouse effect, ozone hole. These environmental issues have threatened economic development of the world, even people's lives. In this context of the pursuit of sustainable development, the study of the impact of FDI on sustainable development has great theoretical significance and practical significance. According to the data of foreign direct investment in china, results show that the pollution-intensive industries, especially the serious pollution-intensive industries are the major industries for foreign direct investment. Thus, concerning and exploring the impact of FDI on sustainable development is an attempt to bring the positive role for sustainable development and reduce its negative impacts. It promotes the sustainable development process in the world. Research achievements about the impact of FDI on sustainable development at home and abroad are mostly focused on theoretical research. It is the lack of empirical analysis. Based on the results of previous research, this paper combines theoretical study and empirical analysis. In detail, it gives FDI's influence to sustainable development. It provides guidance for host countries in making better use of FDI.Paper is based on the relationship between FDI and sustainable development. The paper gives the role of FDI on sustainable development, defined as the fundamental basis of theory, reality and perspective of empirical analysis. It offers advice for the host government. In particular, the thesis research content and perspectives are as flow:1. From the theory, parsing the impact of FDI to economic sustainable development and ecologically sustainable development. The new economic growth theory shows that FDI brings advanced technology for the host country. While technology is the internal driving force of economic growth, so FDI promotes economic growth of the host country. The theories about the transfer of polluting industries explain that the FDI is not conducive to environmental protection in the host country. The "Porter Hypothesis" stresses good reasons and space to improve their own environmental standards in the country with lower environmental standards. FDI is conducive to environmental protection in the host country.2. From a practical side, for example our country, it describes the impact of FDI on sustainable development, from economic sustainable development, ecologically sustainable development, social sustainable development. The results show that FDI contributes to economic sustainable development, but FDI is not conducive to ecological sustainable development and social sustainable development in China.3. From the empirical analysis level, the paper uses generalized difference method and the Granger causality test for the effect of FDI to sustainable development in China. The results show that FDI contributes to economic growth and the deterioration of the environment in China.4. From the response level, it gives the countermeasures and proposals in order to promote the good effect of FDI to sustainable development. First of all, coordinate the relationship between open and Environmental Protection to improve the quality of foreign investment; secondly, by strengthening the macro-control of FDI and providing adequate human capital, FDI can fully play the positive role for sustainable development; once again by strengthening international cooperation, developed and developing countries mobilize all the forces to raise FDI's sense of social responsibility; and finally, make full use the role of FDI in the clean development mechanism, and improve capacity of sustainable development.