An Empirical Analysis Of The Impact Of FDI On The Environment

Along with the development of economic globalization, the acceleration of international capital flows, many multinational companies in the world are targeted towards China, the huge market potential. China became a absorbing foreign capital is one of the most populous country in the world, according to statistics, in2012, our country’s actual foreign investment is$111,716billion. However, foreign investment scale expands unceasingly in our country at the same time, environmental problems also gradually revealed, people began to more and more attention to the relationship between foreign direct investment and the environment. Zhejiang province is one of the fastest provinces of economic development since the reform and opening up, its level of FDI utilization in the country is located in the forefront, FDI utilization in2012is$130.7billion. At present, the transformation and upgrading of zhejiang economy, the severe challenges,"the second pioneering work" face "beautiful China" and "beauty" of zhejiang province the historical mission goals. So, study the mechanism between FDI and environment of zhejiang province, the correct guidance on proper use of FDI in the future, under the premise of not at the expense of the environment to expand investment scale and to realize the sustainable development of zhejiang economy and society is of great significance.Foreign direct investment and pollution of the environment there is very complex, it not only has relationship with investment scale, and capital structure, technology, and also closely related to factors such as environmental standards. In zhejiang province as the research object, this paper USES the method of combining theory and practice of the analysis of the effect of foreign direct investment environment quality of zhejiang province. In the analysis of the current situation of FDI and environment pollution in zhejiang province, on the basis of first selection of industrial "three wastes", industrial wastewater, industrial emissions and emissions as indicators of environmental pollution by solid waste,"environmental kuznets curve" of inspection, and USES the panel data through a single equation model analysis of FDI’s influence on the environment of zhejiang province; Then establish equations of three model of zhejiang province, the influence of FDI on the environment effect is decomposed into scale effect, structure effect and technology effect, comprehensive analysis of direct and indirect effects of FDI environment of zhejiang province. The results showed that the industrial "three wastes" emissions and per capita GDP in zhejiang province were "inverted U" curve relationship, in a single equation model analysis, FDI have positive effect on the environment, the introduction of zhejiang province in recent years to adjust the structure of FDI has much to do. In simultaneous equation model, the analysis of the complex effect of FDI is also obtained similar results. Finally, the article will improve the quality of the utilization of foreign capital and foreign capital management to coordinate the relationship between the economic development and environment, promoting sustainable economic development in zhejiang province, puts forward the direction of optimizing the structure of foreign investment, pay attention to the capital, perfecting the environmental policy and strengthen the foreign enterprise environment supervision and so on four aspects of countermeasures and Suggestions.