The Study On EKC Curve Of China From FDI Perspective

Since reform and opening up, China’s FDI has developed rapidly and the leading role of FDI on the economy was very significant. However, the economic level was very low and the quality of FDI was not very well. Most FDI was concentrated on the secondary industry. At the same time, with the development of economic, the pollution is becoming more and more serious. Thus the environment issue is also becoming more and more concerned. Given the tremendous impact of FDI on China’s economy, to explore China’s economic growth, the relationship between FDI and environmental pollution has important practical significance. Since the1990s, many scholars have researched in different ways. The most famous one is the environmental Kuznets curve which revealed the relationship between economic growth and pollution. This article is from the perspective of FDI to examine the relationship between economic growth and environmental pollution, to broaden the research perspective of the environmental Kuznets curve and put forward the improvement.The framework of this paper is as follows:Part I introduces the background and study significance of this paper, besides, gives details about study method, framework, innovative and weak points.Part II is literature review. This paper sums up mainly from the relationship between economic growth and pollution and the relationship between FDI and pollution. According to the current research problems, the author leads to the direction of this research.Part III is the theoretical analysis of the relationship of economic growth, pollution and FDI. First of all to learn from the model of Copeland and Taylor, through the analysis of the balance of producers and consumers, to build a general equilibrium analysis model and deduce the demand and supply curve of pollution emissions to analyze the impact of economic growth on pollution emissions. Secondly, according to the relevant theoretical research, the author constructed a theoretical model of FDI on economic growth and environmental pollution to analyze the environment pollution from the perspective of FDI.Part IV is empirical analysis. This part introduced the present situation of economic growth, FDI and pollution. And then according to the theoretical analysis of the third part, the author analyzed the correlation.Part V are conclusions and suggestions. This part put forward the suggestions according to the result of the fourth part.