Study On Effects Of FDI And Industrial Agglomeration On Envionmental Pollution Based On Spatial Econometrics

This paper choose the Chinese 30 provinces(exclude Tibet, Hong Kong, Macao and Taiwan regions) from 1992-2012 as the study object. On the basis of current situation describtion of FDI, industrial agglomeration and environment pollution, the author cards the theoretical foundation and action merchanism of the influence that FDI and agglomeration taking effect to environment pollution. To move further, using the emissions of industrial waste water, waste gas, solid wastes, sulfur, smoke and dust as the basis of entropy method, this paper computes out an aggregative environmental indicator to analyze the dependency and transition of spatial distribution of FDI, agglomeration and pollution with the overall and partial Moran I index. Afterward, this article illustrates the necessity of bringing in spatial measurement through the spatial relevance test and the result of the traditional pane data model. Finally, the paper reveals the spatial non-linear relationship of FDI, agglomeration and environment pollution with the spatial lag model(SAR) and the spatial error model(SEM).Results indicate that the dependencies of FDI, agglomeration and environment pollution are quite remarkable and the trends of overall Moran I index of the three indicators are compatible. In addition, the trends of agglomeration and environment pollution are lagged to the index of FDI. In addition, the partial Moran I index shows that a geographical transition exists in the spatial distributions of the three indicators. The result of empirical study indicates that the relationships between FDI and pollution, agglomeration and pollution are both an inverted U shape. That is to say, FDI and agglomeration will aggravated environment pollution in the short term and improve environment quality in the long term.According to the conclusion, this paper proposes to structure equalization of the industrial and regional distribution of FDI, promote the upgrade of agglomeration to be elaborative, and establish a regional cooperation mechanism in order to improve the environment quality.