Analysis On Influence Of FDI On Environmental Pollution In The Pearl River Delta Region

The relationship between foreign direct investment(FDI) and the environment iscomplicated.First, foreign-funded factories will have a direct impact on the environment of thehost country.Second, foreign capital will indirectly affect the industrial structure of the hostcountry.These effects, some will improve the environment, on the contrary, some makes thedeterioration of environmental conditions, the comprehensive effects is not clear.This article takes the Pearl River Delta region as the research object, first describes the statusof FDI in this region and the current situation of environmental pollution, then creates a singleequation model, and meterage regression analysis method has been used to verify whether theregion is in line with the shape of the traditional "environmental kuznets curve" and then arelationship curve is established between environmental pollution emissions and per capitaincome.Then, based on the former model, the FDI variable is added, to study the impact of FDIon the environment.Finally, FDI impact on environment is divided into three aspects of structure,technology and economies of scale, then simultaneous equations model is created tocomprehensive and systematic study the impact of FDI on the Pearl River Delta region.Empirical research indicated that in the inspection of "environmental kuznets curve","Industrial emissions-per capita income" curve and "Industrial solid waste emissions-per capitaincome" curve are both straight lines,"Industrial wastewater emissions-per capita income" curveis U-Shaped.All of these curves do not meet the traditional "environmental kuznets curve"shape.After adding FDI variable in the model, we found that foreign direct investment improvethe environment, and the result show that the Pearl River Delta region does not meet the"pollution haven" hypothesis.The findings of simultaneous equations model and single equationmodel are consistent.