Shaanxi Province Foreign Direct Investment In The Empirical Study Of Relationship Between Ecological Environment

Over the past few years, the scale of Shaanxi province’s foreign direct investment has been pushed up year by year, and it promotes the development of economy. But there is no clear conclusion for it influence to environment’s quality.There are two measurements of the quality to the environment, including ecological destruction and environment pollution. Foreign direct investment mainly impacts the environment through pollutant emissions. The descriptive statistics of foreign direct investment of the study concluded that:FDI prefers to invest in manufacturing and construction industry, and more than half of the amount of investment in the secondary industy invests in polluting industries. This paper uses the data of1990-2010of Shaanxi province, to test the relationship between FDI and pollutant emissions in Shaanxi province. The empirical results show that:the foreign direct investment has a negative correlation between industrial sulfur dioxide emissions and industrial wastewater emissions, and has a positive correlation between solid waste emissions. Domestic capital investment has a positive correlation between industrial sulfur dioxide emissions and industrial wastewater emissions, and has a negative correlation between solid waste emissions.This paper puts forward that FDI has an effect on shaanxi province’s environment quality through scale effect, composition effect and technical effect. Using the related data from1995-2010of Shaanxi province, it sets up simultaneous equations model, and this paper carries on the regression analysis by respectively regarding industrial waste water emissions&industrial sulfur dioxide emissions&industrial solid wastes emission as environmental quality variable, the results indicated that FDI has a positive impact on the scale effect&the technique effect of industrial water emissions, and a negative impact on composition effects, the overall environmental effect of the FDI stock is positive; FDI has a negative impact on the scale effect&the composition effects of industrial sulfur dioxide emissions, and a positive impact on the technique effect,the overall environmental effect of the FDI stock is negative; FDI has a positive impact on the scale effect&the technique effect of industrial solid wastes emissions, and a negative impact on composition effects, the overall environmental effect of the FDI stock is positive; in addition, the improvement of the effect of regulation for the reduction of pollution have played a certain role.The article suggests it can coordinates Shaanxi’s getting into FDI and environmental protection by means of moderating traditional evolution of bringing FDI、optimizing the environment for the foreign investment, increasing foreign investment, improving the foreign direct investment in industrial structure, through these measures, to achieving sustainable development of shaanxi province.