Analysis On The Effects Of Foreign Direct Investment To The Pollution Environment Under The Environmental Regulation

Since reform and opening, in a variety of favorable economic factors, particularly the foreign trade and foreign direct investment has made significant achievements, the Chinese economy experienced a sustained high growth phase. Under the rapid economic development, there has inevitable increasing of resource consumption, more serious environmental pollution, and the dilemma of conflict between the environmental quality and economic development is growing concern. With the same course of development in most developing countries, environmental degradation, resource depletion is the face of economic take-off phase of a major problem. And to curb the declining quality of the environment and ensure sustainable economic development, the Chinese government continues to strengthen environmental regulation, improves the environment the legal system in law to improve environmental standards, increase environmental management efforts. In this paper, under the control of this environment, we empirical research the relation among the foreign direct investment, international trade and environmental pollution.Based on Chinese and foreign scholars about foreign direct investment and environmental pollution above the relevant theory of relationship of environmental regulation, first under foreign direct investment and environmental pollution, secondly analyzed the mechanism of China, FDI and environmental pollution status are analyzed. Finally by establishing league equation model, and2SLS the1996-2009China embodied in29provinces since the panel data, through empirical analysis is carried out2SLS method. Status analysis shows that:first, our foreign direct endowment scale unceasingly expands, the relative1990by2009increased about25times. Second, China’s environmental pollution was in worsening condition. Finally, with China’s environment control level, the strengthening of foreign direct investment and did not appear any noticeable side effect, but environmental regulation and foreign direct investment appeared significantly positive correlation. Additional FDI capital productivity is obviously higher than that of state-owned capital productivity, to a certain extent, to promote FDI in China environmental protection level. The empirical analysis found that:generally speaking, FDI into our country in various ways to reduce the level of environmental pollution in China, including through direct and indirect influences technical level of environmental effect produced by the largest. Environmental regulations are through affecting FDI inflows into though the scale in China. But overall the environmental regulation make FDI accounted for FDI abatement effect significantly, the total abatement effect by about41%.