A Study On The Influence Of Environmental Regulation On The Location Selection Of Industrial Investment In China

Domestic investment will not only help to solve the capital shortage problems in the process of economic development in various regions of China,but also promote the generation of advanced technology and management experience,making a great contribution to the development of China’s market economy.How to successfully attract domestic capital has become the focus in the case that the inflow of foreign direct investment has dropped sharply.Investment in 2019 hit a record high of $179billion,up 2.7 percent from the previous year.From the perspective of regional distribution,domestic investment presents a spatial pattern of "high in the east and low in the west",which objectively widens the gap in China’s regional economic development and hinders the sustainable,healthy and harmonious development of China’s economy.In the introduction of investment at the same time,along with the increasingly strict environmental regulation system level requirement,as one of the factors influencing investment location choice,system research environmental regulation affect the regional distribution of investment in our country,to deepen the regional own innovation and development and opening to the outside world and communication,promote harmonious development of regional economy is of great significance.The research shows that environmental regulation can directly affect the investment location choice,in addition,in the presence of industrial agglomeration,the relationship between environmental regulation policy and investment location choice will also be affected.In this paper,China’s 31 provinces,autonomous regions during 2007-2017 type(municipality directly under the central government)according to the market incentive environmental regulation system and informal system of environmental regulation(voluntary)fixed effects model respectively,the impact on the industry investment,summed up the type of market incentive environmental regulation model is relatively informal environmental regulation system(voluntary)model can better explain the current our country environmental regulation factor’s influence on investment location choice.The conclusion of the model was confirmed by robustness test.At the same time,the method is divided into four regions according to the space.It is found that most of the environmental regulation and other control variables in the east,central,west and northeast of China have significant regional characteristics.There is a negative correlation between the proportion of the independent variable pollutant discharge fee in the gross regional product and the total amount of investment,and a positive correlation between the amount of investment and the amount of investment in pollution control.Among the control variables,foreign trade volume,technological innovation level,environmental governance capacity and regional GDP have a positive impact on investment,while labor cost has a negative impact on regional investment.Finally,it puts forward the policy Suggestions of constantly improving the environmental regulation system,implementing thecomprehensive control system and selecting different environmental regulation tools in different regions to promote the green development of China’s economy.