Research On The Impact Of FDI On The Ecological Efficiency Of Chinese Industry

With the profound changes in global technology and industry and the rise of the new industrial revolution,green sustainable development has become the only way for industrial development.The traditional high-consumption,high-emission,highpollution,and low-value-added industrial development model has become the bottleneck of high-quality industrial development.Therefore,promoting the coordinated development of economy,resources,and the environment in the industrial production process,that is,improving industrial ecological efficiency is an Important issue needed to be approached.In addition,existing research finds that foreign direct investment(FDI)plays an important role in the process of changes in industrial ecological efficiency,but there are many differences on the relationship of them.What's more,thre's relatively little literature on the mechanism of FDI affecting industrial ecoefficiency.In view of this,on the basis of the existing research,and of the characteristics with FDI heterogeneity,after defining the quantity and quality of FDI and industrial ecological efficiency,this paper analyzes the impact mechanism of FDI on industrial ecological efficiency.Based on that,the panel data of 30 provinces and cities in China from 2001 to 2017(Incomplete data from Tibet,Hong Kong,Macao,and Taiwan have been excluded)and the super efficiency SBM model including common frontier and unexpected output are used to measure the FDI and industrial ecological efficiency.The panel data model and panel simultaneous equation model are constructed to empirically test the mechanism of FDI's impact on industrial ecological efficiency.The study shows that:(1)During the sample period,China's industrial ecological efficiency was generally low,and the regional gap has been increasing.The industrial ecological efficiency in the eastern region has been higher than the national average,and the central and western regions has been lower than the national average.(2)From the perspective of direct impact,FDI quality has a positive spillover effect on industrial ecological efficiency,while the spillover effect of FDI quantity is not significant.Industrial ecological efficiency has a positive correlation with FDI quantity and quality.(3)From the perspective of indirect effects,the quality of FDI has improved industrial ecological efficiency by promoting the advanced industrial structure and economic development level,while the FDI quantity has generated positive and negative externalities by weakening the negative effects of environmental regulations and deteriorating the industrial structure.Owing to its comprehensive spillovers,the effect did not pass the significance test,that is,the amount of FDI had no significant effect on industrial ecological efficiency.Therefore,in the process of attracting investment,it is necessary to strengthen the screening of FDI quality,improve the independent innovation capabilities of domestic-funded enterprises,and improve the investment environment to promote a positive cycle of positive interaction between FDI and industrial ecological efficiency.