The Impacts Of Foreign Direct Investment On Environmental Pollution In China

With the development of globalization and the accelerating speed of international capital flows. Meanwhile, with the growing of China's reform and opening, the improvement of infrastructure and preferential investment policies of the system and the improvement of labor quality and other conditions, which made China, become the best popular destination of foreign direct investment. To some extent, The Injection of foreign capital, which contribute to the rapid development of Chinese economy, the promotion of China Science and Technology, and the quality of people's living standard. In a word, FDI have a greater positive impact on China. However, increasing foreign investment has created more serious pollution of environment in China.Firstly, this article concludes the relevant literature of Scholars at home and abroad. Those literatures base on theoretical research and empirical test. Secondly, this paper selects the data of China's 30 provinces among 2005-2014 years. Three major pollution indicators--industrial sulfur dioxide, industrial effluent, solid wastes, and Foreign Direct Investment (FDI), Gross Domestic Product (GDP), the secondary sector GDP share of the total GDP, Per capita GDP to the test regression relation among the three major pollution indices. Among them, the FDI investment relationship between pollution indicators and directly reflects the environmental effects of FDI. In order to make sure the accuracy of research, this paper introduce other three factors—GDP, secondary industry GDP share of overall GDP and per capita GDP. Studies have shown that integrated environmental effects of FDI are negative. That is, FDI has exacerbated environmental pollution in China. And, finally, also analyze the effects of regional differences in FDI environment, research results show that FDI environment effects should show the imbalance of East and West.