An Empirical Analysis On The Impacts Of FDI On The Guangdong’s Energy Consumption

There is no denying the fact that the continuing inflow of the FDI has promoted theeconomic development of China effectively. However, in recent years, in order to solve theproblem of the shortage of capital of domestic construction, we often lower the threshold of theforeign investment and management,as a result, lots of Energy-intensive industries appear, in aword, the FDI not only Promotes the growth of economic,but also brings problems as excessiveenergy consumption and environmental pollution. On the one hand, Guangdong becomes thebiggest economy province of china, accompanying by huge energy consumption, On the otherhand, Guangdong province is the earliest province opening to the outside world, the amount ofits utilization of foreign capital is also located on the front of the whole country. Therefore, thetopic finding a new way to making use of the FDI which marketing the Guangdong province haspractical significance. The structure of the paper is as follows, firstly, This paper uses panel dataof21prefecture-level city of Guangdong Province to Analysis the overall impact of energyconsumption of the FDI. Next, modeling on the Grossman and Kruger’s practices in thesearching of the environmental effects of foreign trade to divide the effects of the FDI onenergy consumption into scale effect, structure effect and technical effect.And then conducting apreliminary study through the model which is made of relevant variables.Conclusion shows thatthe scale and technology effect of the FDI on the consumption in the economies is positive,while the structure effect is negative.In addition, the overall impact of the FDI on energyconsumption is also positive.