Analysis Of The Environmental Effects By The Absorption Of FDI In The Central Of China

Since the mid-twentieth century, with the development of global economy, international capital flows continues to accelerate. The relationshipbetween foreign direct investmentand the environmenthas been paid more and more attention, FDI and potential correlation between the environments is increasingly apparent. After China joined the WTO, under the control of industrial gradient transfer law, foreign investment in central China has been expanding rapidly.. While the economic growth the environmental pollution are growing faster.. Based on this phenomenon, the article mainly studies thecentral region absorbed correlation between FDI and environmental pollution, and explore the central region to absorb the impact of FDI on the environment.The article first establish environmental Kuznets curve model of the central region, By removal the FDI factor authentication central area of environmental Kuznets curve. The results shows:in the study of industrial waste water, industrial waste, and industrial solid waste of environmental Kuznets curve empirical analysis, compared with theenvironmental improvement curve that weed out FDI’s factor, the environmental Kuznets curve with FDI’s factor achieve environmental improvement curve point later. Thus proving theabsorbing of FDI in central region has negative impact to the local environment. After proving the absorption of FDI in central region exist negative effects, the paper draws on the analytical framework of international trade and environmental pollution, through economies of scale, structure effect and technical effects such as environmental impact of FDI mechanism central region. By establishing the regression model, the environmental impact of FDI decomposed into size, structure and technical effects, analyzes of FDI on the central region of the specific impact of environmental mechanisms, the results suggest that the absorption of FDI growth will exacerbate environmental pollution scale central region; FDI through adjustment of industrial structure, increasing the proportion of industrial pollution in the industrial sector, resulting in a negative impact on FDI structure effect on the environment; technical effect of FDI can reduce emissions of industrial waste to some extent, but the effect is not obvious. Article that central China should absorb FDI by improving the region’s industrial structure, strengthen the use of foreign policy and system-oriented resource conservation and environmental protection, establish and perfect the system of paid use of the environment, such as foreign direct investment in the directory guidance to coordinate foreign direct investment and environmental pollution, and promote the harmonious development of the central region of China’s economy, the environment.