The Research On Environment Effect Of Foreign Direct Investment

Since the reform and open policy, on one hand, three economic regions get the remarkable achievement in developing export-orient economy and attracting foreign direct investment; on the other hand, three economic regions'environment get worsened because of aggravated industrial pollution though FDI do better to our economy on capital, technology and the mode of management. Did the FDI improve the quality of the environment or on the contrary?This paper's research is on the environment effect of the FDI by combining theory analysis and empirical test. First, related theories and studies are reviewed as a theoretical background; and then, on the analysis base of FDI and environment pollution in existence, this paper tried to explore the effect of FDI on the three economic regions'environment- income curve in quantity; after this, based on the environment effect and location choice, a simultaneous system by which the mutual effect mechanism between FDI and environment could be explored was coming into being; at last, this paper explored more deeply about the FDI-environment effect reason of the difference of the three economic regions and put forward some politic suggestions from two aspects: commonness and otherness.