The Impact Of Foreign Direct Investment On The Environment

Since reform and opening-up, the economic standard is enhancing, simultaneously, bringing in and utilizing of FDI is popular. Economic globalization drive multinational capital flows; FDI has been made the most of diffusely by various countries. As the economy is boom, a lot of the environment pollution problems are appearing. The general development of our economy, advanced the introduction and application of FDI, with the aim of further driving the step of economic development in our country, but the blind introduction of foreign capital caused certain influence on our environment. As countries gradually enhance environmental mentality, the connection of economic evolution and the environment is being people’s attention little by little. Persevere in the synchronization of the economic blossom and environmental protection, heighten the on-going development of economy, has been embraced by ever-bigger countries.This essay mainly states the three threshold effects (per capita income, human capital and marketization) of the influence of FDI on the environment. First of all, review and summarize domestic and foreign related research document about the affect of FDI on the environment; secondly, from three aspects:the external theoretic and EKC, the mechanism of the environmental effect of FDI and the environmental threshold effects of FDI, the thesis expounds the rationale on the environmental effect of FDI; again, state and summary the present situation of the regional FDI in China and the pollution of the environment, which estimates the environmental pollution comprehensive index of 30 provinces in China, using the entropy weight method, and afford the support information for the follow-up demonstration analysis; then, from the perspective of endogenous, using threshold panel regression method, examine per capita income, human capital and market threshold effects about the effect of FDI on our environment, and the positive results show that the environmental effect of FDI on our environment exists the three threshold effects, besides, in the different stages of the threshold variables, the environmental effect of FDI is quite different; finally, in line with the asmatteroffact from area to area, puts forward the sound and valid approaches.In the past the research about the relevance of FDI and the environment used cross terms or exogenous grouping, but this paper use threshold panel regression method, which has two advantages:firstly, don’t have to give the of nonlinear equation model, threshold and threshold quantities are determined by the sample of endogenous; secondly, in line with Progressive Distribution Theoretic, establish the confidence interval of threshold parameters, in the meantime, use "sampling" means to calculate the significance of the threshold values. So this article uses threshold panel regression method, at the same time introduces the three items of per capita income, to examine three threshold effects of the impact of FDI on our environment, which are the following important conclusions:first, the relationship between the per capita income and the environment presents "N" type curve; second, the environmental impress of FDI exists per capita income threshold effect, at the laigh standard of income, FDI aggravates pollutions of the environment, and when the per capita earning achieves a proper situation, FDI can perfect the environment quality, third, the impact of FDI on our environment exists human capital threshold effect, when human capital is low, the FDI causes the rising of the degree of environmental pollution, when the human capital reaches a certain height, FDI has a positive impact on the environment; fourth, the impact of FDI on our environment exists marketization threshold effect, in the low marketization level, FDI has negative impact on the environment, following the constant boosting of the degree of marketization, the degree of the environment pollution from FDI is gradually reducing.