The Spatial Effect Analysis On The Role Of FDI In Chinese Environmental Pollution

With the development of reform and opening-up policy as well as entry intoWTO,the absolute quantity of absorbing foreign direct investment(FDI) in our countryhas increased successionally in recent years.Howerer,along with FDI’s sharpincrease,environmental pollution becomes progressively worse.The relationshipbetween FDI and environmental pollution have drawn many scholars’attentions fromhome and abroad recent years.Limited by data or technique,there are many defects insholars’ research contents and methods,these affect explanatory power of reality andreferential value in decision making.In view of above reasons, we take30Chineseprovinces as research subjects,demonstrate and interpret the influence mechanism ofFDI on environmental pollution firstly,then use exploratory spatial data analysis tofocus on the research of spatial distribution pattern of FDI as well as environmentalpollution and their danamic evolution.Later we examine FDI’s effects onenvironmental pollution by using Spatial Fixed effect Regression model andGeographically and Temporally Weighted Regression model respectly.The results of exploratory spatial data analysis show that FDI as well asenvironmental pollution in our provinces exits an obvious spatial autocorrelation.Bothof them have remarkable characteristics of path dependence and form differentaccumulation areas. As a general rule, FDI accumulation areas with high value isenvironmental pollution accumulation areas with low value.On the countrary, FDIaccumulation areas with low high value is environmental pollution accumulationareas with high value. So it could be concluded tentatively that FDI accumulation ingeographical cluster is favorable to improving regional environmental pollution.Theresults of Spatial Fixed effect Regression model indicate that the provincialenvironmental pollution is not only impacted by environmental pollution fromneighboring provinces but also impacted from structural disparities in region.As oneof main spatially influencing factors in structural disparities,FDI clustering in regionshas improved regional environmental pollution to a certain degreeAs a whole,‘Pollution Haven’ Hypothesis is invalid in China,but there are remarkable differencesin FDI’s effects on environmental pollution due to its different industries and mainsources.Furthermore,the results of Geographically and Temporally WeightedRegression model indicates that there are significant spatial variability in effects of FDI on environmental pollution.As time passes by, the environmental effects of FDIare gradually strengthening,their improvement areas begin to extend from easternregion to middle and western regions,but the coefficients FDI’s environmental effectsin every province are different obviously.FDI in eastern region is more favorable forimprove regional environmental pollution,the middle and western regional need tofurther introduce high-quality FDI.