Study Of The Environmental Regulation Competition Between Local Governments Influence On FDI Location Selection

In the global economy are closely linked,the accelerating regional economic integration development of macro backdrop,foreign direct investment and development on our country's economy produced the profound influence,become the important impetus of economic development in China.Under the guidance of scientific concept of development in recent years,our government pay more attention to the coordinated development of economy and environment,and emphasizes the ecological environment protection in the important position in the social and economic development,environmental protection policy strictly year by year.However strict environmental regulation policy would increase the cost of production and operation of enterprises,to a great extent,affects the foreign capital enterprise location choice.In China's fiscal decentralization and political centralization system framework,with economic growth as the core of performance appraisal mechanism to promote channel competition was intense competition between local governments,which,through to reduce the environmental standards in order to attract foreign capital inflows is a typical one of the means.Environmental regulation of the vicious competition between local governments is very unfavorable to ecological civilization construction and the sustainable economic development in our country.According to the above situation,this article first expounds the environmental regulation mechanism of FDI location choice;Then use respectively by using game theory and social network analysis from two aspects of theory and empirical analysis of the environmental regulation mechanism of competition between local governments;Finally on the basis of the above theoretical framework,choose 2000-2014 panel data empirical studies of environmental regulation of local government competition in our country the influence of foreign direct investment location choice.The results showed that:(1)drop relaxed environmental regulation can significantly increase a regional FDI inflows,the local government for jurisdiction benefit maximization goal,have an incentive to reduce the level of environmental regulation to attract FDI inflows;(2)environmental policy game between local government does exist "the bottom" competition characteristics,environmental regulation become a local government as the game tools for economic growth;(3)foreign direct investment have regional agglomeration effect,foreign direct investment enterprises tend to choose better infrastructure and industrial supporting degree,foreign capital enterprise concentrated area.However,when an area economic resources are scarce or limited,will compete for FDI competition between regions.On the basis of empirical research conclusions above,this paper combined with China's national conditions of financing policy and environmental regulation policy formulation and implementation,improve the government official's promotion evaluation system put forward the corresponding countermeasures and Suggestions,in order to optimize the structure of foreign investment in China,correct the competition between local governments in our country,set up the mechanism of regional cooperation development,mutually beneficial and win-win,realize the continued healthy and stable development of national economy.