Foreign Direct Investment?Environmental Regulation And Innovation Performance Of Enterprise

In this paper,we integrate the theory about innovation spillover of FDI and innovation compensation of environmental regulation.By means of that,we found the idea that we can study the environmental performance of FDI through the mechanism that environmental regulation can produce innovation compensation,and the idea that we also can study the economic performance of environmental regulation through the mechanism that FDI will cause innovation spillover.After that we construct the theoretical model of this paper,and then we utilize Chinese Industrial Statistics Database of 2005-2007,Chinese environmental yearbook and data from provinces to do the empirical test,to answer the two question that whether the FDI has the positive environmental performance and whether the environmental regulation has the positive economic performance.First,we put forward a mechanism that the technology advance which the FDI induced will enhance the ability of domestic enterprises to attain compensation from innovation when it faces the environmental regulations,and the empirical test verify that.Second,we come up with the mechanism that the environmental regulation will compel the domestic enterprise to learn from the MNCS,which will promote the spill-over of FDI,we also confirm that through the empirical test.Finally,based on the theoretical analysis and the empirical test,we analysis the environmental policy which refers FDI in a criterion that whether the two policy together will internalize the externality of the behavior of enterprises and try to construct an system of policies which can coordinate FDI policy and environmental policy?Empirical results and the analysis of the policy is significant for our country how to attract high—quality FDI and to promote our economic structure greenly transforming.