Study On The Environmental Effects Of Outward Foreign Direct Investment On Home Country

Along with accelerating the pace of"going out",China has continuously expanded its overseas market and become one of the largest foreign investment countries in the world.The influence of Chinese capital should not be underestimated.The sustained growth of China's OFDI reflects the fact that China's economy is gradually maturing.However,the rise of investment protectionism and the changes in world economy have made Chinese outward foreign direct investment development under great challenge.For China,how to carry out scientific planning to improve the quality of foreign direct investment is one of the most important issues.From the perspective of domestic development,the ecological environment has deteriorated drastically.Air pollution is common.For example,haze has seriously plagued people's health and life.In addition.water pollution has seriously affected people's health.As early as 1987,the United Nations World Commission on Environment and Development put forward the concept of sustainable development.As Chinese economic develop,environmental issues have also received increasing attention.In order to limit the deterioration of the environment.various policies and laws are implemented which will inhibit domestic pollution production activities.However,as an important way for the production factors flowing between countries,OFDI breaks the boundaries of regions,nations and countries so that the market expansion can continue to deepen.Then,whether the allocation of resource elements brought about by OFDI affects the green development of China's economy is an important issue deserving our attention.Therefore,under the background of coordinating economic development and environmental protection,it is of great theoretical and practical significance to explore the home country's environmental effects of OFDI.How to integrate OFDI with the development of green and low-carbon economy promoting Chinese economic transformation is also worth discussing.Firstly,based on the existing research literatures,this thesis systematically analyzes the development status of China's OFDI and the status quo of environmental pollution to explore the relationship between the two.Then,this thesis theoretically analyzes the impact path of OFDI on the domestic environment,which are scale effect,structural effect and technological effect.Further,constructing simultaneous equations model,this thesis uses China's provincial panel data from 2003 to 2015 in order to empirically test the environmental effects of OFDI.The research results show that the home country's environmental effects of Chinese OFDI are negative,that is,outward foreign direct investment activities are not conducive to improving China's environmental situation.The estimation of scale effect and structural effect is positive and technical effect is negative.The former has a greater effect than the latter so the coefficient is negative.In addition,the technical effect is not very good.Based on this,this thesis examines the OFDI of different investment motives from the perspective of reverse technology spillovers.The study found that China's market-seeking OFDI is conducive to improving the domestic environment,while technology-seeking foreign direct investment has not fully played its role in improving the ecological environment.Finally,according to the relevant theoretical basis and empirical results,this thesis proposes relevant countermeasures.Firstly,take advantage of the "One Belt and One Road"development initiative to coordinate OFDI in the eastern,central and western regions.Secondly,improve the quality of market-seeking and resource-seeking outward foreign direct investment,to make full use of industrial structure optimization effect of OFDI.Thirdly,encourage enterprises to pursue technology-seeking OFDI,especially for purpose of acquiring green technologies.