Heterogeneous Human Capital And Environment Influence Mechanism Of FDI

In this paper,human capital is divided into two kinds: homogeneous capital and heterogeneous human capital, and in order to test the "Pollution Haven Hypothesis", the environmental impact mechanism of FDI in different human capital is studied by using the panel data from 1999 to 2012.Firstly, we use industrial sulfur dioxide emissions and industrial dust emissions as explanatory variables for regression analysis. The study found that in the condition of human capital stock, FDI investment will not cause pollution to the environment, but in fact,the idiosyncratic component of human capital is the key factor for human capital to cause positive environmental effect of FDI. On the contrary, FDI investment in high homogeneous human capital regions will lead to environmental degradation. As a robustness test, this paper selects industrial sulfur dioxide, industrial dust,industrial waste water and industrial waste gas emissions as the explained variable to test the environmental effects of FDI under heterogeneous human capital, the analysis come to the conclusion: in high heterogeneous human capital area, FDI has emissions reducing effect; in low heterogeneous human capital area,FDI will have an adverse effect on the environment. Finally, we use regression method to measure the threshold to promote the occurrence of FDI emission reduction effect. Comparison of measurement results and the area of idiosyncratic human capital value, we find that at the beginning of the 21 st century, except a few areas in eastern China, most areas in China cannot exceed the threshold value,meaning that in this period FDI damages the quality of the environment in these areas. As the accumulating of idiosyncratic human capital after ten years,most regions in China have passed the threshold, but the heterogeneity of human capital in some eastern region is still not enough to through the threshold value.