The Analysis Of The Environment Regulations Effects On FDI

Reforming and opening30years, China relies on foreign capital to make up forthe inadequacy of financing of construction, it has made tremendous progress in theeconomy, and wins recognitions in the international status. But as the foreign capitalpromoting Chinese economic development, Chinese environmental pollution isincreasingly serious, therefore, it causes environmental regulation consequently. Butwith China’s environmental regulation level rises ceaselessly, will inhibit the inflow ofFDI, so the environmental regulations on Chinese FDI effects become researchingobjects of many scholars. Jiangsu is the major province in the absorption of foreigndirect investment, studying environmental regulation on the impact of the Jiangsu FDIhas important significance.This paper mainly uses quantitative analysis method of combining the qualitativeanalysis, mainly using the descriptive statistics, quantitative analysis has mainly usedthe method of econometrics. This paper mainly considers environmental regulation onforeign direct investment as the main route for research, qualitatively analysis theforeign direct investment in Jiangsu in present development situation, and threeeconomic zones on the distribution of FDI, and Jiangsu FDI on industry distributionstructure. Then introducing environmental regulation factor, establish the econometricmodel, using the Grainger Granger causality test and cointegration analysis, study theenvironmental regulation on Jiangsu the impact of FDI, the influential direction andtrend. At last it reached FDI in Jiangsu existing problems, and supplied the proposalsabout coordinating the development of FDI and environmental.According to the analysis, we can draw the following conclusions: first, throughto the Jiangsu foreign direct investment and environmental regulation analysis, lookfrom gross, we found Jiangsu absorption of foreign direct investment in the nationalleading level; from the industry, foreign direct investment is concentrated in themanufacturing industry; from the regional distribution point of view, Jiangsu provinceforeign trader direct investment is concentrated in the South of Jiangsu area;environmental protection from the result, Jiangsu in the cause of environmentalprotection has made significant progress. In second, according to the time seriesregression analysis results, improve the level of environmental regulation will reducethe inflow of FDI, environmental regulation to improve the level of FDI will promotethe upgrading of the industrial structure. Third, through the co-integration test andGrainger Granger causality test, we find that the foreign direct investment and environmental regulation in a stationary state, exist between the two Grainger causalrelation; at the same time, environmental regulation and foreign direct investment andindustry distribution does not exist between the Grainger Granger causalityrelationship, but there is a difference between the long-term dynamic equilibriumrelationship. In fourth, the city level panel data analysis, we found that JiangsuProvince, North Jiangsu area environmental regulation on foreign direct investmenteffect, finally, according to the above analysis, the author puts forward some onattracting foreign direct investment and the policy suggestions of environmentalregulation.