Analysis On The Impact Of Foreign Direct Investment On China’s Environment

Since the reform and opening up, China’s FDI inflows have increased every year and have promoted China’s economic development as well as brought a series of environmental problems to our country. This article, bases on the perspective of size、structure、regional and the source, will analyze this impact. The results show that, at different stages in the impact of FDI in China is not the same impact on the environment, to the now stable adjustment period from the initial period of rapid development, the extent of environmental pollution is gradually increased, improved and now; In the structure that the phenomenon that the FDI try to transfer pollution-intensive industries to our country by way of direct investment still exists, which has worsened the pollution of pollution-intensive industries in China. FDI and environmental pollution present in the area east to the west the situation in the region, China, and with the development of central and western, this kind of pollution from the eastern gradually shift to the west; foreign sources shows that the United States, Japan and Europe developed countries a positive impact on the ecological environment in China is higher than that of Hong Kong, Macao and Taiwan regions, and the negative effects of China’s Hong Kong, Macao and Taiwan regions is higher than the United States and Japan and other developed countries. Then by using the panel data of China’s30provinces (municipalities) during1999-2010, we have studied the environmental impact of FDI on China as a whole as well as the eastern, central and western region. The measurement results show that, as a whole, FDI have a negative effect on China’s environment and the impact of FDI on the eastern, central and western environment presents gradient feature from west high to east low. Finally, we propose some suggests for our country in order to attract foreign investment and improve the environment.