The Influence Of Foreign Direct Investment Quality On Regional Environment

The accelerating trend of economic globalization and the deepening of international division of labor further promote the transnational flow of international capital.China attracts foreign direct investment from all over the world by virtue of its advantages in labor force,market potential,social environment and investment policy,and has gradually become the developing country that attracts the most FDI in the world.A large number of facts have proved that FDI,as an important international capital carrier,plays an important role in the process of great achievements in China’s economic reform.In recent years,with the rapid promotion of FDI to economic development,environmental problems have become increasingly prominent.Scholars at home and abroad have paid extensive attention to the impact of FDI on regional environment,but have not reached a unanimous conclusion.Moreover,it is worth noting that most studies on the impact of FDI on regional environment are usually based on the "homogenization" of FDI,directly investigating the relationship between "quantitative" FDI and regional environment.Since the 19 th National Congress of the Communist Party of China,the economy has gradually changed from high-speed development to high-quality development.Therefore,this paper focuses on the "quality" of FDI and discusses the impact of FDI quality on regional environment,which is of practical significance to promote the environmentally friendly concept of foreign direct investment and realize high-quality economic development and environmental protection.First of all,based on environmental public goods theory,international production compromise theory,"pollution paradise" and "pollution halo" hypothesis,environmental Kuznet curve and other theories and existing relevant literature,the paper theoretically analyzes the influence and transmission mechanism of FDI quality on regional environment by referring to the theoretical model constructed by Copeland and Taylor.That is,FDI quality affects regional environment through economic scale,industrial structure and technological innovation.Secondly,the comprehensive index system of FDI quality and environmental pollution are constructed respectively.The actual size,export capacity,profitability and technical level of FDI were selected to represent the quality of FDI,while the discharge of industrial waste water,the discharge of industrial sulfur dioxide and the discharge of industrial smoke and dust were selected to represent environmental pollution.From 2006 to 2019,China’s provinces,cities and regions(except Tibet,Hong Kong,Macao and Taiwan)were divided into coastal and inland regions,and the comprehensive index of FDI quality and environmental pollution in each region was measured by entropy weight method,and the measurement results were analyzed.Finally,using the panel data of 30 provinces,cities and regions(except Xizang,Hong Kong,Macao and Taiwan)from 2006 to 2019,the fixed effect model is adopted to conduct the baseline regression of the impact of FDI quality on regional environment.Then,the indirect effect of FDI quality on regional environment is analyzed by taking economic scale,industrial structure and technological innovation as the mediating factors.The paper draws the following conclusions :(1)the overall environmental pollution is u-shaped,and the environmental pollution in inland areas is much higher than that in coastal areas;(2)THE development of FDI quality is unstable,with fluctuations and adjustments occurring in different periods over time;(3)The improvement of FDI quality helps reduce environmental pollution,and indirectly affects regional environment by promoting economic growth,promoting industrial upgrading and improving technological innovation ability;(4)By region,the average level of FDI quality in coastal areas is higher than that in inland areas;The effect of FDI quality on environment improvement in coastal areas is greater than that in inland areas.The quality of FDI in both coastal and inland regions can reduce environmental pollution through scale effect and technological effect,but the inland regions cannot reduce environmental pollution through structural effect.Based on the conclusions,in order to promote the improvement of FDI quality and further improve the regional environment,the paper puts forward targeted policy suggestions: attach importance to environmental protection and promote environmental improvement in inland areas;We will promote the transformation of foreign investment and steadily improve the quality of foreign investment.Rationally guide the flow of foreign investment and optimize the path of foreign investment;We will formulate differentiated policies for attracting investment and realize cross-regional industrial cooperation.