The Empirecal Research On The Impact Of Fdi To Regional Energy Intensity

Energy is not only necessary material basis for the survival of human society, but also an important strategic resource for a country. As economy grows and society develops, energy will play a more and more important role in one's economy. But at the same time some problems such as the energy bottleneck, environmental pressure and so on have appeared which are inevitably met during the economy development. The contradiction between energy shortage and rapid economic growths is an important issue which our country has to face in the next few years. Therefore, many scholars study the impact of some economic factors to energy intensity, these factors includes industrial structure> technological progress,energy structure and so on, and their all gain valuable results. However, few research is taken to study the influence of fdi, which plays an important part since China's reform and opening up, on energy intensity.This paper studies the relationship between FDI and regional energy intensity on the basis of the relevant research both at home and abroad. First, use econometric models to measure the degree and the direction of the impact of fdi to regional energy intensity, and we found in eastern and central regions, the increase of FDI will reduce energy intensity, but in the western region, the increase of FDI will increase energy intensity. Then, starting from the formula of energy intensity, we decompose the change of regional energy intensity into regional technological change-. regional structural shift and regional output scale. We found that the regional technological change is confirmed as the dominant contributor to the total regional energy intensity change, the impacts of the regional structural shift and the regional output scale to each regional are different. Finally, we use the impulse response function to simulate how FDI influence the factors which lead to the change of regional energy intensity including regional technological change,regional structural shift and regional output scale. The result shows that in the eastern and western region FDI decrease regional energy intensity by regional technological change and regional structural shift. In the central region FDI decrease regional energy intensity by regional technological change, regional structural shift and regional output scale.