Research On Environmental Pollution From Foreign Direct Investment In China

As multinational companies,foreign direct investment(FDI)focuses on controlling business management right and make profits through exporting intangible assets such as capital,equipment,technology and management functions.It has a long-term impact on multinational companies.In order to actively introduce foreign investment,host countries consider economic growth,employment in society,price stability,balance of international payments and other factors comprehensively.The impact of foreign investment on environment is one of the factors that should be considered by host countries to introduce foreign investment.This is a continual problem how the host countries balance the relationship between the economy and environment.The studies of relationship between foreign investment and environment place emphasis on different factors during research of impact of foreign investment on environment due to the different perspectives of the countries.The conclusions of domestic and foreign empirical studies are different.Thus,it is necessary to conduct deep research.On this basis,this paper studies the relationship between foreign investment and environment in China(Mainland China),establishes the theoretical analysis framework of the impact of foreign investment on environment and reveals a unity of viewpoint that foreign investment affects environment in order to develop the research idea of relationship between foreign investment and environment by an systematic,multi-level and wide-ranging econometrics.This article extends to the research ideas.First,this paper introduces research background and significance as w ell as the domestic and foreign research status.Based on the existing research achievements,the ways of research thinking can be deepened.Second,it supposed in the text that attracting foreign capital is completed by the cooperation of both multinational corporations and host countries,but the purpose of both sides are obviously different.The core purpose of multinational enterprises foreign investment is to maximize the overall value of the company,while the host country has a dual purpose.Governments of rational host countries hope to realize the two goals of both economy and environment,while irrational ones may focus on one of the two goals.Goals are different between the two,thus the regulation rules of foreign capital are also different.The refore,combining pollution heaven hypothesis with inverted-U hypothesis,the text analyzed the early stage of China’s economic development and rapid development period,put forward ―dynamic pollution heaven hypothesis‖,and theoretically analyzed the pollution industry gradient transfer which used foreign enterprises as the medium in developed and less developed countries,in China’s developed regions and less developed regions.And from the space,it also analyzed the spatial linkage of provincial environment and the effect of foreign capital environment on the theory of decomposition,thus making it a theoretical basis of the whole text.Third,based on relevant theories of relationship between environmental regulation and FDI,this paper examines the prevalent ―pollution haven hypothesis‖ in China and foreign countries.It examines whether the movement of foreign companies is caused by the differences of environmental regulation between their motherlands and China.Moreover,this paper compares the diffe rences of environmental regulation between China and major foreign countries.It constructs panel model to examine the impact of environmental regulation on FDI based on the environmental regulation of 15 countries as variables.Fourth,it analyzes how FDI affects China’s environment from industry and space.On one hand,from the perspective of industry,it studies the industrial layout of FDI movement to China and pollution of key investment industries,conducts comparative analysis of distribution frequency of pollution industries of local companies,and analyzes the impact of environment from foreign traditional manufacturing industry,high-tech industry and export-oriented foreign companies.Meanwhile,it conducts case analysis by typical industries.On the other hand,from the perspective of space,in order to examine the agglomeration degree of FDI and environmental pollution in geographical space,this paper analyzes and studies by the exploratory space data of the two factors and checks whether there exists spatial agglomeration between FDI and environmental pollution or not by Moran’s I of spatial autocorrelation and scatter diagram.In addition,it makes use of LISA significance level of spatial autocorrelation to examine the distribution pattern.I n order to further examine the impact of geographical layout of FDI in China on environment,this paper adopts SDM to conduct quantitative study.In the end,on the basis of decomposition theory,this paper explores the environmental effect of FDI from scale effect,technological effect and structural effect.Based on Cobb-Douglas function,this paper constructs simultaneous equation 3SLS systematic model to take into full account the endogenous problems and error items and adopts quantitative model to examine based on decomposition effect theory.This investigation combines the pollution heaven hypothesis and the Kuznets curve and takes China as the research background,putting forward the ―new dynamic pollution heaven hypothesis‖ and improving the investigation framework of the environmental pollution caused by the foreign investment in China.On the basis of the actual situation of the foreign investment in China,this paper,innovatively,conducts the research from two dimensions,the industry and the s pace,the integral and decomposition.Most of the investigations consider the regulation difference among the provinces in China or among the industrial environments and the deficiency of testing the pollution heaven,and they creatively build models about the impacts of the enterprise resettlement due to the regulation difference between China and the major countries who invests in China.For the first time in the investigation,the pollution from the foreign-funded companies is divided into export-oriented pollution and import-substituted pollution,and this paper compares both with each other.Currently,the relevant studies prefer to do the empirical analysis on the basis of conventional econometric,and are lack of the consideration of the spatial linkage.This paper introduces the SDM spatial econometric model which corrects the parameter bias with centralization approach,improving the analysis approach of this investigation.In this investigation,on basis of the theory,it raises a new idea and establishes the analysis framework of the environmental pollution from the foreign investment in China from the view of host country,so it has an important significance for the development and richness of the relevant theory.Meanwhile,the investigation is helpful in obtaining the correct and objective conclusion from the empirical study on the basis of sufficient data and has a positive and practical meaning for clarifying the environmental impact of the foreign investment in China and for promoting the sustainable development of the national economy.