Empirical Study On The Environmental Effect Of The Open Economy

With the development of global economic, human material standard of life has been greatly improved. The environment has further constrained human development because of the deterioration of the living environment coursed by the excessive consumption of resources and a large number of emissions of pollutants. China has a vast territory and a low per capita resource for a large population. The high economic growth has resulted in a large number of emissions per year. Meanwhile, China, as a developing country, with the low economic level, the faster economic development is our top priority. So we cannot let the problem of environment affect the further development of our economy. How to solve the problem between the economic growth and environment is particularly urgent at this time in our country.In this world, with the deepening of economic globalization, the economic opening-up is an evitable choice of each country that desires development. In order to better develop the economy, after years of efforts, China also joined WTO in 2001, economic external dependence increases. But, a negative impact on the environment is also growing caused by the open economy. The contradiction between economic growth and environmental partly convert gradually to the contradiction between open economy and the environment.Based on this, this article describes and analyzes the status of the open economy of China, and analyzes the industrial "three wastes" discharge status, trying to see the relationship of the international trade and foreign direct investment and China's industrial "three wastes" emissions. Meanwhile, the author, based on previous research, established two mathematical models, trying to quantify the impact between international trade, foreign direct investment and the environment, respectively, of the whole country and the three different regions of the country- eastern and central and western.This article is divided into five parts:This topic describes the background, significance, research methods and technical route, and finally introduced this innovation and deficiencies of this article. The second part is the review of the relationship between open economy and the environment Research. This section contains two sections. Sectionâ… , the review of the relationship between trade and environment of, Sectionâ…¡is the review of the relationship between FDI and the Environment Review. Each section is part into foreign and domestic in order to better response of the status quo.The third part of this paper is to analyze China's open economy and the state of the environment. First, we analyze China's foreign trade situation from four respect of the international trade-size, structure, methods and sources; Secondly, we study the status of the flow of foreign direct investment, distribution and proportion of investment of foreign direct investment in pollution-intensive industries; Third, we analyzes the discharge status of "three wastes" of the eight most pollution-intensive industries, "three wastes" emissions and its emissions per unit of GDP. Through the analysis, we can get a latest knowledge of the link.The fourth part is empirical analysis. In the first section we analyze the mechanisms of impact that the FDI and international play on the environmental; Sectionâ…¡is empirical analysis, studying on the whole country, with sulfur dioxide, industrial COD and industrial solid waste emissions as the dependent variable. Differently to the previous model of scholars, the author uses per capita consumption, instead of per capita income to express income effects. The author put FDI and foreign dependence variables in the same model to show the openness. The third section is the empirical analysis that study on the impact that foreign dependence play on the environment, whit the three regions of the east, central and western as objects, with the sulfur dioxide emissions as dependent variable. The fifth part is the policy recommendations, based on the above.