Research On The Home Country Environment Effect Of China's Outward Direct Investmen

With the acceleration of the opening-up policy,China continues to explore the international market and has been in the forefront of foreign investment in the world.The increase of foreign investment has promoted the development of China’s economy.However,with the rise of foreign investment protectionism and international unilateralism,the world economic pattern has undergone major changes,and the international situation is very unfavorable for China.How to carry out highlevel foreign direct investment is one of the major issues facing China’s economic development.From the perspective of domestic development situation,the increase of foreign investment has worsened the ecological environment and caused frequent haze weather,which has caused great harm to people’s physical and mental health.The pollution of rivers,lakes and seas has increased,making it difficult for fish and shrimp to live.Meanwhile,it has posed a great threat to the safety of drinking water and increased solid waste,which has worsened the environment.Subsequently,the environmental pollution problem has been paid attention to,and relevant domestic laws and regulations have been issued one after another.The current situation of environmental pollution has been alleviated to a certain extent,while restricting the development of domestic economy.As an important way of international capital circulation,OFDI breaks through the boundaries of geography,country and nation to a certain extent,making labor,capital and resources and other factors of production more widely distributed and allocated internationally,which is conducive to the continuous expansion and deepening of the market.Then is there a certain correlation between OFDI and the green development of China’s economy? It is of great theoretical and practical significance to study the home environment effect of OFDI.First of all,this paper summarizes the domestic and foreign research status of OFDI and environmental pollution.On this basis,the relationship between the two is theoretically analyzed.The results show that OFDI mainly affects environmental pollution from three aspects: economic scale,industrial structure and technological level.Therefore,a simultaneous equation model is constructed to empirically test the environmental pollution effect of China’s OFDI in the home country by using China’s inter-provincial panel data from 2003 to 2019.The empirical results show that China’s OFDI increases the level of domestic environmental pollution,and scale effect and structure effect produce negative effect,technology effect produce positive effect,and the comprehensive effect is negative.Then,due to technical effect to improve the domestic environment,so the technology spillovers from the perspective of different investment motives of foreign direct investment to the influence of pollution of the environment is important,it was found that seek of resource and technology to seek the worsening environmental pollution,the foreign direct investment market for foreign direct investment to optimize the domestic pollution.Finally,according to the empirical results,this paper puts forward the following policy suggestions: Actively promoting the Belt and Road Initiative,the coordinated development of OFDI between east and West regions;Actively promoting international cooperation on production capacity and equipment manufacturing,and accelerating the transformation and upgrading of China’s industrial structure;Actively promoting the market demand and resource demand of foreign direct investment,reducing the level of domestic pollution emissions;Actively promoting technology demand-oriented foreign direct investment,accelerating the acquisition of green development technology;Actively strengthening the exchange and cooperation between OFDI enterprises and related enterprises,and obtaining more reverse spillovers through correlation effect.