The Analysis Of The Environment Regulations Effects On Foreign Direct Investment In Hebei Province

The problem about the impact of environmental regulation on foreign direct investment has been a hot issue within the framework of relationship between trade and environment. The environmental regulation is treated as an important part of the investment environment, and its change will take a great effect on foreign companies’ entrance cost and will also affect the cost of the production. Furthermore, its change will affect the quality and efficiency of the foreign direct investment, and this will be taken into great consideration by the foreign companies when they choose the host country and industries of the relevant region. Hebei province has long attached the great importance to the introduction and the utilization of the foreign direct investment, and has achieved remarkable feats. The foreign direct investment has played a great role in promoting the development of the economic, the innovation of the technology and other aspects in Hebei province. But at the same time,we could clearly see that the ecological environment pollution in Hebei province increased year by year, ranked the forefront of the country. This paper is mainly do the research on the problems as follows: whether the foreign direct investment brings harm to the environment in Hebei province and how to reduce the environment problems in the use of the foreign direct investment. These problems which need to be tracked and studied are also the research institute of this paper.The main research contents of this paper can be divided into three parts. The first part is the analysis of the impact of environmental regulation on foreign direct investment, tell the relationship between these two factors in theory. Combined with the development of Hebei province, the second part of this paper will do the empirical analysis on the basis of the related model which includes the environmental regulation and foreign direct investment. According to the above analysis results, the last part will put forward the corresponding suggestions about the foreign direct investment and environmental regulation which are aiming at reducing the foreign direct investment’ adverse effects on environment and forcing the environmental regulation. I think these suggestions will provide certain reference for coordinating the relationship between the development of the foreign direct investment and the protection of the environment in Hebei province.