FDI, Trade Openness And CO₂Emissions In Wuhan City

With the economic globalization, the CO2emissions showed a trend of rapid growth,how to coordinate the relationship between FDI, trade openness and CO2emissions becomesa hot issue. Data of FDI, trade openness and CO2emissions in Wuhan city from1996to2012was used to analyze the present situation of the FDI, trade openness and CO2emissions inWuhan city. We use trade dependence to account the level of trade openness, use11kinds ofmain fossil fuels, fertilizers, pesticides, farm-oriented film to account CO2emissions inWuhan. The results show that FDI, trade openness and CO2emissions have periodicalcharacteristics.Co-integration analysis and granger test of FDI, trade openness and CO2emissionsdata in Wuhan city, the action of FDI and trade openness on CO2emissions were studiedrespectively. The research results showed that there was a long-term equilibrium relationshipbetween FDI and CO2emissions, and it’s true as well between trade openness and CO2emissions. In the short term, FDI is the granger cause of CO2emissions. That is to say, themore FDI as a share of GDP, the greater it can promote the Wuhan CO2emissions. However,in the long run, CO2emissions are the granger reason of FDI. For the relationship betweentrade openness and CO2emissions there were no mutual promoting effect between tradeopenness and the CO2emissions. Finally, based on the conclusions derived from theoreticaland empirical parts, some feasible suggestions and measures were put forward to promote thecoordinated development of trade and environment in Wuhan city.