Research On The Impact Of Foreign Direct Investment On Environmental Technical Efficiency Of Chinese Industry

Under the influence of climate change,energy shortage and financial crisis,all countries around the world have to reflect on the limitation of the current economic model and reach the consensus on green growth.The industry is both an important pillar of Chinese economy and the primary department of Chinese energy consumption,so accelerating industrial green growth plays a significant role in promoting low-carbon and green growth of Chinese economy.Moreover,foreign direct investment(FDI)exerts an effect on environmental quality while boosting Chinese economic growth.How to improve FDI quality while increasing the FDI quantity to better bring the positive FDI spillover effects into play and boost Chinese industrial green growth is an important realistic problem confronting China.This paper first normatively analyzes the mechanism by which FDI impacts industrial environmental technical efficiency.Afterwards,it summarizes and analyzes the current status of Chinese inward FDI in three aspects of overall profile,regional distribution and industrial distribution.Next,after constructing environmental pollution composite indexes of Chinese 34 industries utilizing the revised entropy method,based on whose value all sample industries are divided into two groups,high pollution emission group and low pollution emission group,it measures and analyzes the environmental technical efficiency of Chinese 34 industries and their two groups from 2001 to 2013 by adopting the DEA-SBM model taking undesirable outputs into consideration.Then,based on the panel data of Chinese 34 industries from 2001 to 2013 and using panel Tobit model,it empirically examines the effect of FDI on environmental technical efficiency of Chinese industry and the effect of environmental regulation on FDI effect for the industry as a whole and its two groups respectively.Lastly,based on qualitative and quantitative analysis results,it makes suggestions as to how to rationally utilize inward FDI to boost Chinese industrial green growth.Empirical results reveal that FDI is conducive to improving environmental technical efficiency of Chinese industry,but environmental regulation is harmful for FDI to improve environmental technical efficiency of Chinese industry for all sample industries,high pollution emission group and low pollution emission group.Meanwhile,this paper finds that for all sample industries,high pollution emission group and low pollution emission group,output per capita,environmental regulation and firm size improve environmental technical efficiency of Chinese industry and that for all sample industries and low pollution emission group,capital stock per capital and R&D intensity are to the disadvantage of the improvement of environmental technical efficiency of Chinese industry,but for high pollution emission group,both the two don’t produce any effect.Therefore,this paper proposes that Chinese government should differentiate FDI attraction policies and accelerate the introduction and perfection of economic instruments of environmental regulation to better utilize FDI to boost Chinese industrial green growth.