The Study Of Effect Of FDI On The Environmental Pollution In Beijing-Tianjin-Hebei Area

In recent years, with the accelerating process of globalization, the international capital flows faster than before. FDI has become one of the important factors and forces to promote the economic development in the host countries. Since the reform and opening up, our country opens to the outside world actively to develop the economy. The local governments make various policies to attract foreign investment, and the scale of FDI continuously expands, bringing not only the capital but also the advanced technology and management concepts to our country, contributing to the rapid growth of Chinese economy. But with the development of economy, air quality, water pollution, noise pollution and other environmental problems have become more and more prominent, and the discussions on the relationship between foreign direct investment and the environment become increasingly fierce. Beijing-Tianjin-Hebei is one of the areas which absorb the most foreign direct investment in China, and the entering rate of foreign direct investment has been accelerating since 2002. The environment in this area has been constantly deteriorating with its economic growth. This paper mainly studies the impact of FDI on the environment of Beijing-Tianjin-Hebei area.This paper adopted 1995--2013 time series data of Beijing-Tianjin-Hebei area, and studied the effect of FDI on the environmental pollution by Granger causality test, impulse response function and variance decomposition analysis. The result showed that: for Beijing-Tianjin-Hebei area level, FDI reduced the environmental pollution; and for the regional level, FDI in Beijing reduced its environmental pollution, FDI in Tianjin aggravated its environmental pollution, and the effect of FDI on the environmental pollution in Hebei Province is not obvious. It can be seen that there is a large region difference of the effect of FDI on the environmental pollution, and promoting the coordinated development of this area, optimizing the structure of foreign capital helps to effectively play the positive effects of foreign investment and improve the environmental health of the entire area and all regions.