| With the establishment of " Two-oriented " Society of Changsha—Zhuzhou—Xiangtan City Cluster in Hunan Province and accelerated rising of the amount of FDI, the issue of the environmental effects of FDI in Hunan Province has been paid much attention.Under the framework of effectiveness of trade environment, this article analyses the environmental impact of FDI on Hunan Province with data and chart from the scale effects, composition effects and technical effects. The result shows that:the scale effects and composition effects of FDI are unsure, while the technical effects are positive, which reduce pollution in Hunan Province.This article uses four pollutants such as industrial sulfur dioxide, polluted waste, polluted water and polluted solid based on the panel data of the foreign direct investment in20manufacturing sectors of Hunan Province during2006-2009. The result shows that:FDI of the severe and moderate pollution-intensive industries has significant negative effects, but FDI of the light pollution-intensive industries has positive effects; In general, FDI flowing into Hunan’s manufacturing sectors produces positive effects. Four pollutants have positive correlations with Gross Industrial Output Value, having opposite correlations with Corporate Research and Development Spending.According to the empirical analysis result of environmental effects of FDI in manufacturing industry of Hunan, this article suggests that it can coordinate the relationship between FDI and environmental protection in Hunan Province by means of strengthening environmental legislation and enforcement, reasonably adjusting industrial structure, optimizing the manufacturing structure of foreign investment and actively guiding foreign investment to emerging strategic industries, and encouraging enterprises to increase investment in environmental protection, etc. |
