Research On The Impact Of Environmental Regulations On China's Foreign Direct Investment

Since 1978,the market-oriented economic system reform has made China one of the countries with the largest foreign direct investment inflow(FDI)in the world.Especially in2014,China surpassed the United States for the first time and became the world's largest FDI inflow country.The large-scale entry of FDI not only eased the financial constraints of China's economic development,but also promoted China's trade development and economic growth,and the technology spillover effect of foreign capital accelerated the process of industrial structure upgrading and marketization.However,extensive economic development has led to the deterioration of China's ecological environment.Increasingly serious environmental pollution has become a factor that restricts the sustainable development of China's economy and affects the improvement of residents' quality of life.Under this background,the Chinese government began to gradually increase environmental regulation,and successively introduced a series of environmental regulation policies.The impact of the implementation of environmental regulation policies on China's FDI inflows will be the main content of this study,and it is also a hot topic in the current research field.problem.This paper revolves around the core research topics of environmental regulation and FDI.Firstly,it summarizes relevant domestic and foreign literatures,then conducts theoretical analysis.On the basis of relevant theories,it puts forward the cost transmission mechanism,technological innovation mechanism and entry barrier mechanism of environmental regulation affecting FDI.And construct the theoretical model of environmental regulation and FDI,and then consider the spatial autocorrelation of economic elements.This paper proposes the spatial spillover effect hypothesis of environmental regulation on FDI.Secondly,in terms of the status quo analysis,this paper mainly introduces the implementation background and implementation content of the “environmental information disclosure”policy,and conducts a preliminary analysis of the implementation effect of the “ environmental information disclosure ” policy and the current status of FDI from the overall and local levels.The empirical analysis section provides the factual basis.In the empirical analysis,273 prefecture-level cities in China were used as research samples in 2004-2016,using the “environmental information disclosure” policy to construct quasi-natural experiments,and using the dual difference method(DID)to explore the“environmental information disclosure”policy for FDI.The impact and empirical test of the impact mechanism show that:(1)The “ environmental information disclosure ” policy is generally not conducive to FDI inflow,and the “pollution shelter” hypothesis has been verified at the prefecture-level city level in China,and this suppression The effect is lagging and time-sensitive;(2)the implementation of environmental regulation policies will increase production costs,hinder technological innovation and constitute barriers to entry and inhibit FDI inflows;(3)environmental regulation significantly inhibits the entry of FDI in developed cities,and underdeveloped The regional FDI plays a facilitating role;however,based on the heterogeneity analysis of urban administrative level,it is found that the influence of environmental regulation on FDI does not follow the law of “increasing marginal effect”;(4)taking into account spatial correlation,this paper uses spatial measurement.The law explores the spatial effects of environmental regulation on FDI,and if the spatial lag term coefficient of environmental regulation variables is negative,There is a competitive effect between neighboring cities in Ming Dynasty.The empirical results show that environmental regulation has a negative spatial spillover effect on FDI,and there is a competitive effect between the open city of information and the government of the neighboring cities,but the competition effect between cities is local,and there is a competitive effect between the eastern and southern cities.The environmental regulation variables and spatial lag coefficient of the central cities are positive,indicating that the spatial synergy effect is formed between the central cities.Based on the above research,combined with the conclusions of the empirical analysis process,this paper proposes corresponding policy recommendations from the government,industry and enterprise levels.