Spillover Effect Of Foreign Direct Investment On Environment Of Kunshan

Since the implementation of reform and open-up policy, China has achieved amazing achievements in the development of economy and social undertakings with the large-scale introduction of foreign direct investment, and become the model of the Third World development. In recent years, people pay more and more attention to the environmental effect brought to China with foreign direct investment when witnessing the rapid growth of the national economy. A common understanding has been formed that we shall insist on the opinion of scientific development when developing the economy and shall not sacrifice at the cost of the environment.Kunshan is a city very successful in attracting foreign direct investment and developing export-oriented economy. The present environment condition of Kunshan is a miniature of that in all coastal developed areas and also the miniature of the environment effect coming along with our export-oriented economy development.In this article, we study the environmental condition in Kunshan City, with the spillover effect of foreign direct investment (the halo effect and the pollution refuge hypothetic theory) as the analytic method, make the demonstrative study on the pollution refuge and the halo effect, analyze whether Kunshan is a pollution refuge shelter for foreign direct investment and discuss various mechanisms generating the environment halo effect, based on which we propose the suggestions regarding the policies for attraction of foreign direct investment, environmental protection for the harmonious development of environment: To determine the investment introduction direction based on the environmental capacity and;establish third-party mechanism to catalyze the halo effect;learn from the experience of foreign -invested enterprises and prevent pollution from the domestic private enterprises. Although our study is limited to Kunshan, Kunshan is a miniature of China in attracting foreign direct investment,so the conclusions of this study and the policy suggestions are of universally significance to some extent.