A Study On The Impact Of China's Environmental Regulation On FDI

The market-oriented economic reforms in China from 1978 have turned the country into one that is most attractive to foreign direct investment(FDI). At the same time, China's environment has been worsening. Government implies environmental regulation measures, and become pay attention to about how to realize improving quality of FDI, industrial structure and make progress in technology when carrying out the environmental regulation at the same time.The dissertation, based on theories of International Trade, Foreign direct investment and environmental regulation Economics, combines theorectical methods and empirical methods together and use improved theoretical models to study the impact of evironmetal regulation on FDI from three aspects:Country-of-origin, province and industry. And then make some suggestions on environmental regulation policies and FDI policies based on the conclusion of the empirical reasearch.First, Study the impact of evironmetal regulation on FDI from the aspect of Country-of-origin. Country-of-origin are divided into developed countries and developing countires, the conclusion shows that relative to the Country-of-origin, strengthen the environmental regulation of China will restrain the FDI from developing countries, but have no effect on the FDI of developed countries. The conclusion is the guidence of chosing the type of FDI.Second, The dissertation empirically analyzes the influence of environmental regulation on FDI by Panel Data from different regions, the conclusion shows that FDI will consider the regional Factor endowments of the province when make the investment decision, capital element is a key element when attractiong FDI, less stringent environmental regulation is not the sole factor of attractiong FDI, the conclusion provides the guidance of the regional FDI policies.Third, The dissertation empirically analyzes the influence of environmental regulation on FDI by Panel Data from different industries, the conclusion shows that the environmental regulation has no effect on the industrial share of 20 pollution intensive sectors'FDI, this shows that the environmental regulation of industry has no restriction on pollution intensive FDI, and the efficiency is low. The conclusion provides the guidance of revolution of the industrial environmental regulation.Based on the conclusion of the empirical reasearch and China-specific conditions, the dissertation makes some suggestions on environmental regulation policies and FDI policies, and expected to coordinate both.