Research On The Effect Of China's Foreign Direct Investment On The Host Country's Carbon Emissions

With the rapid development of China's economy and the outward investment strategy,China's OFDI has made remarkable achievements,increasing Chinsese position in the world.However,global carbon dioxide emissions are also gradually increasing.The climate change caused by the greenhouse effect has gradually affected human beings.Therefore,how to develop low-carbon economy has become the consensus.Some international reports question that China transfers its high-emission,high-energy consumption and high-pollution enterprises to reduce domestic carbon emissions,but increase the emissions of the host country by OFDI.Although such reports caused some trouble,the only rational way is to analyze if China's OFDI has increased the emissions of those countries.So,we can improve some deficiencies of China's OFDI to have long-term development.In this paper,we have two aspecst to do the research.First,through theoretical analysis to summarize the transmission path between OFDI and CO2.Second,based on the samples of China's OFDI countries from 2006 to 2016,an empirical study was conducted by using the systematic GMM method to objectively observe whether China's OFDI actually aggravates the carbon dioxide emissions of the host country as the public opinion says.In addition,in order to make the empirical results comparable,this paper selected the United States and Japan to conduct an empirical study on the influence of OFDI on the carbon emissions of the host country during the period of rapid development.The results of this paper show that every 1%increase in China's OFDI will reduce the carbon emissions of the host country by 0.0465%,indicating that China's OFDI did not lead to an increase in the carbon dioxide emissions of the host country from 2006 to 2016.And this article will state the sample into the OECD countries and classify the OECD countries,the empirical results show that whether the host country belongs to the OECD,China's OFDI did not increase the host country's carbon emissions,to explain the Chinese OFDI through technology spillover promote the host country can reduce the pressure on carbon emissions and help the host country to achieve carbon reduction.The empirical results of the United States(1983-1996)and Japan(1983-2001)showed that both the United States and Japan aggravated the carbon dioxide emissions of the host country in the stage of rapid development of their FDI.The comparison shows that during the period of rapid development of OFDI in China,the production technology and clean energy use of enterprises have been improved,so the carbon emission pressure of the host country has not been increased.Therefore,it can be seen from the test results that some international reports on the impact of China's OFDI on the carbon emissions of the host country are not comprehensive and objective.Finally,this paper proposes relevant policy Suggestions on how to develop low-carbon OFDI in a better and more efficient way from a practical perspective.