Foreign Direct Investment Affect The Empirical Analysis Of China's Environmental Quality And Mechanism,

Over the past few years, the scale of our country's foreign direct investment has been pushed up year by year, and it promotes the economic development, but the problem whether it influences our country's environmental quality has attracted increasing attention in the academic circles.Environmental quality is the measure to assess the environmental quality and quantity, FDI has an impact on our country's pollutant emissions, which led to the changes of environmental quality in our country. This paper inspects the total relationship between FDI and our country's environmental quality by using the panel data of 30 provinces and regions from 1998 to 2005 in our country. The results of empirical study show that the total capital of the three kinds of foreign-invested industrial enterprises has the remarkable positive impact on the total amount of industrial waste water discharge & industrial waste gas discharge & industrial solid wastes.This paper puts forward that FDI has an effect on our country's environmental quality through scale effect, composition effect and technical effect. The expansion of foreign direct investment will inevitably bring about the expansion of production scale, and under certain conditions of production technology, more output will result in more consumption of natural resources and more emission of pollutants; The increased proportion of FDI pollution industry can bring about negative structure effect to our country's environmental quality; While FDI technology spillovers have an effect on the progress of our country's environmental protection technology and the improvement of energy and resource utilization efficiency, in the same output, both resource depletion and produced pollutants reduced. Using the related data from 1991 to 2005 of our country, it sets up simultaneous equations model, and this paper carries on the regression analysis by respectively regarding industrial waste water discharge & industrial waste gas discharge & industrial solid wastes as environmental quality variable. The results indicated that FDI has a positive impact on the scale effect & the technique effect of industrial waste water discharge, but not on the composition effect; FDI has a positive effect on the technique effect of industrial waste gas discharge & industrial solid wastes, but not on the scale effect & composition effect.This article suggests it can moderate the relationship between FDI getting into and our country's environmental protection to realize sustainable development by means of revising the traditional investment- invitation performance evaluation indexes, setting up green FDI barracks, improving investment-invitation industrial structure and strengthening the environmental supervision and management of foreign-funded enterprises, etc.