The Influence Of Environment Regulation On The Location Choice Of FDI

In the wave of economic globalization, transnational corporations and foreigndirect investment (FDI) has played a leading role. Since reform and opening-up, ourcountry has been the use of FDI as the main content of development strategy. To date,China has become one of the largest number of countries to attract FDI in the world,and become one of the most important FDI recipient countries. However, due to theurgent economic development has led to the deterioration of the global ecologicalenvironment, many countries have stepped up protection and management of theenvironment, which made the FDI inflows decreased. Environmental regulation inChina has not been uniform standards, environmental policies in the various regionsput in a big difference, making serious imbalances in FDI inflows. In order to urgentlydevelop its economy, some local governments have worked out a lower standard ofeco-environmental regulation, or even "zero environmental regulations". Therefore,the relationship between environmental regulation and FDI location choice forin-depth study is necessary but also current urgent issues to be addressed.The researching of this article on the basis of environmental regulation and FDIlocation selection theory, from environmental regulations and the current situationanalysis of FDI’s location selection, respectively, using data on provincial and urbanagglomeration on the empirical analysis of the relationship between them. The maincontents of this article are as follows:The text is divided into5chapters. Chapter1briefly reviews the environmentalregulation and FDI-related literature, presented the research background, purpose andmeaning, and identified research thinking and method. Chapter2start with thetheoretical analysis, consists of two parts. First of all, set out the meaning and types ofenvironmental regulation, and on this basis to propose a number of instruments andrelated measures; Finally, explained the impact of environmental regulation on FDIlocation selection mechanism. Analysis on the3rd chapter, first set out by UnitedStates and present situation of environmental regulation in China and environmentalregulation has certain implications to our country; Followed by analysis of the currentsituation of foreign direct investment in China and regional distribution, laid theFoundation for later: an empirical analysis. Empirical analysis of the4th chapter,mainly using2002-2010in the various provinces and municipalities in panel dataregression analysis of the statistical data, to East, middle and West of China’s three major regions for the study, from a dynamic perspective on location choice: anempirical analysis of FDI in China. Chapter5primarily to summarize this article,and then suggest appropriate countermeasures.