The Analysis About Manufacturing Industries Foreign Direct Investment’s Impact On The Environment In Western China

Manufacturing is the pillar induatry and plays an important role in the economicsystem in western China. With the opening of develop-the-west strategy, foreign directinvestment(hereinafter referred to as FDI) in western area still puts focus on theManufacturing industry. The different types of FDI’s scale is expanding increasingly,and the pollution characteristics of the manufacturing industry itself exist in the courseof production, which make people pay more attention to the relationship between theenvironment and foreign direct investment. How to settle with environment and FDI soas to promote the sustainable development of regional economy is a focus in futurework. So the study on the relationship of both in western area can help the governmentof every province to carry on economic actions reasonably.Due to many people still put foucs on the environment effect of foreign directinvestment from the coastal areas of east China, and the central and western reginswhere economy is un-developed are researched less, specially the western China. Inaddition, all most researchful objects concern on FDI’s environmental effect of a certainprovince. but they don’t study a specific industry detailedly, Even if a few scholarsstudy the industry, yet to be manufacturing industries, they are still vacant. So the themeof this paper is the influence of manufacturing FDI on western environment. First, thepaper states the relationship between environment and foreign direct investment intheory. Then analysing the status quo about manufacturing FDI and environment ofwestern area with a lot of data. Next establishing econometric model and analysing therelationship of both by empirical analysis. And based on the empirical results, we alsocalculate the total of environment effect about different types of FDI enterprises.With the help of Eviews5.1and the use of Two-Stages Least Squares(TSLS), thispaper comes to the following conclusions: Analysing foreign captial from HongKong,Macao, Taiwan that inflow into manufacturing industries in weatern China, this type offoreign capital speed up the development of manufacturing, and the effect on westernenvironment of the economic scale is negative, that is captial stock of manufacturingindustries incresaed by1%, it can promote economic scale by0.77%and will have4.97%of the waste gas emission. However, manufacturing aborsb a lot foreign capital,It will improve the ratio of total output value in western district, So the structural effect of FDI is also negative. Meanwhile, FDI also stimulate each of government in westernarea to carry out environment regulation policy, but these policies can not properlysuppress waste emission, So the result of technique effect is inadequate. Analysing theother foreign capital, as to the effect of economic scale, we draw the same conclusionto the capital from HongKong, Macao, Taiwan, but we can not make sure structuraleffect of FDI is also passive. In addition, this type of capital provide some advancedtechnique for the western district. At last, the paper puts forward a few reseasonableproposals about How to settle with the relationship between environment and foreigndirect investment? In addition, we should adjust to the industrial structure of thewestern regin, we also improve investor pattern of the western regin so as to increasethe contribution of foreign direct investment to the western economy.