Study On The Relationship Between Fdi And Environmental Pollution Of Yangtze River Economic Belt

Yangtze River Economic Belt is a new regional strategy of opening up China’s new round of reform and opening up the implementation of the transformation. It is the most developed of Yangtze River region and is one of the high densities of economic corridors nationwide. Including 11 provinces, covering the Yangtze River Delta, the middle reaches of Yangtze River city Group, Sichuan city group, Central GuiZhou and Yunnan city group city Group. The Yangtze River Delta is one of the fastest growing economies in the Yangtze River Economic Belt region. Since the reform and opening up, the Yangtze River Delta has been attracting a lot of foreign direct investment. The introduction of FDI has promoted the economic development of Yangtze River Economic Belt, but the impact of FDI on the environment also requires attention. The relationship between FDI and the environmental pollution is complicated. Through previous research, we learn to FDI will directly affect environmental standards of the host country. Also, FDI will have an indirect effect on the environmental standards by affecting the host country’s economic scale, industrial structure and technological level. At the same time, the level of environmental regulation has an effect on the environment by affecting FDI into the quantity and quality of the host country. These effects, some will help to improve the quality of the environment, some will increase the level of environmental pollution. So studying the relationship between FDI and environmental pollution, and making relevant policy recommendations for achieving the Yangtze River Economic Belt sustainable economic and social development has a strong practical significance.The purpose of this paper is to make relevant policy suggestions for achieving the coordinated development of FDI and environmental by theoretical analysis and empirical research on the relationship between FDI and environmental pollution. Firstly, relevant research results of the domestic and foreign scholars were summarized. Secondly, analyzing the current situation of FDI environmental pollution in the Yangtze River Economic Belt; next building environment pollution index by entropy method. Then on the basis of existing theory, constructing simultaneous equations model which containing scale effect, structure effect, technical effect and environmental regulation effect; then using three-stage least squares to estimate simultaneous equations model. The result shows that, as a whole, foreign direct investment increases the level of environmental pollution in the Yangtze River Economic Belt. Finally, this paper puts forward some relevant policy suggestions.