Research On The Impact Of Guangdong’s FDI On Energy Consumption Intensity

The energy shortage has not only become a bottleneck which restricting Guangdong’seconomic growth, but also a serious threat to its energy security. What’s worse, more pollutantswhich were produced in the process of energy product and consume bring more environmentalpressure. The analyses of two aspects which include energy shortage and environmental pressurehave indicated that it necessary to improve energy efficiency and reduce energy intensity inGuangdong. The level of energy consumption intensity is not only related to its economic trackand scale, but also the impact of FDI under the trend of economic globalization. As a front of useFDI which ranks on the top of China, the entry of foreign capital will undoubtedly affectGuangdong’s energy consumption intensity. Therefore, it has an important practical significanceto study the impact of Guangdong’s FDI on energy consumption intensity.Based on the theory of FDI environment and energy consumption intensity, firstly, the papersystematically analyzes the mechanism of FDI’s influence on energy consumption intensity fromFDI scale effect, FDI structure effect and FDI technology effect. Followed are quantitativeelaborate of the status of FDI and energy consumption intensity in Guangdong, and qualitativeanalysis of the positive and negative effects of FDI scale effect, FDI structure effect and FDItechnology effect on Guangdong’s energy consumption intensity. Then we do empirical researchfrom the angles of region, industry, and different sources. And finally give suggestions to thedecline in Guangdong’s energy consumption intensity from FDI perspective.The main conclusions of the paper are concluded as follows: Firstly, the proposition of "FDIcan reduce the inflow’s energy consumption intensity" is preliminarily verified in differentregions of Guangdong, and FDI scale effect can promote regional energy consumption intensityto decline while along with significant differences, which requires the government to optimizethe FDI policy to promote regional coordinated development. Secondly, FDI scale effect and FDIstructure effect decrease Guangdong’s energy consumption intensity while FDI technology effectmakes it rise, but on the whole FDI contributes to the decline of Guangdong’s energyconsumption intensity, which remind the government to increase the FDI inflows threshold.Thirdly, the rising proportion of FDI from Japan, South Korea, Singapore, Britain, France andGermany is helpful to reduce Guangdong’s energy consumption intensity while the impact of FDI from Hong Kong, Macao, Taiwan is just opposite. What’s more, because of technicalprotection and investment direction, FDI from the United States and Canada has no such asignificant decline in the role of Guangdong’s energy comsumption intensity, and even play anegative role to some extent, so the government should do structural adjustment of FDI source.