The Influence Of China's Environmental Regulations On FDI From The Perspective Of Environmental Decentralization

Since the reform and opening up more than 40 years ago,foreign direct investment has injected vigor and vitality into the rapid growth of China's economy.When a large number of foreign-funded enterprises have entered China,it inevitably causes China's environmental pollution problems,which gradually become the focus and hotspot.In order to focus on solving prominent environmental problems,the state has constantly pushed forward the reform of government institutions and governance systems,and tends to delegate power to local governments in terms of the jurisdiction of environmental governance affairs.For this reason,local governments have strengthened their control over local affairs.As a "rational economic man",local governments restrict environmental administration with the development of local economy.Similarly,the decentralization of environmental administration is also restricted,but environmental supervision will be strict with people's requirements on environmental quality.At present,in view of the economic transformation and development period,how local governments balance environmental governance and foreign direct investment is worth studying.Based on the provincial panel data from 2008 to 2015,the regression analysis was carried out on how China's environmental regulations affect fdi,and the significant results of primary and secondary environmental regulations on fdi were tested respectively.Secondly,this paper USES the econometric model to analyze the path regression of environmental decentralization,and examines how the interaction effects of environmental decentralization,environmental administrative decentralization,environmental supervision decentralization,environmental monitoring decentralization and environmental regulation affect foreign direct investment.At the same time,regression analysis and description of other control variables and foreign direct investment are also carried out.In order to prevent regional heterogeneity,further verification is made between variables by using environmental regulation intensity.Finally,the research results are obtained:(1)the impact of environmental regulation on FDI shows a positive "u-shaped" relationship,and the study on the impact of environmental regulation on FDI has dual effects.(2)environmental regulation under the effect of environmental decentralization has a positive impact on fdi,but this effect gradually weakens.Among which environmental regulation under the effect of environmental administrative decentralization and environmental monitoring decentralization has a significant positive impact on fdi.In addition,the effect of environmental regulation under the decentralization of environmental supervision on foreign direct investment increases first and then decreases.Practice shows that under the circumstance of increased local environmental decentralization,high environmental regulation threshold has no negative effect on FDI inflow,but is conducive to the introduction of capital-based high-tech industries,which will be conducive to the transformation and development of China's economy under the new normal.