Analysis On The Environmental Effect Of Foreign Direct Investment In Shandong Province

In recent years,with the accelerating process of globalization, the cross-border flows ofcapital,technology,resources and other factors of production become more frequently,and thescale expand gradually,Since the Reform and Opening,China has actively take an openingroad of economic development,local government vigorously implement various preferentialpolicies to attract international capital to invest in China,Foreign direct investment in Chinahas grown rapidly.Foreign direct investment has brought advanced production technology andmanagement experience to China,promoting the rapid development of China’seconomy,increasing the per capita income levels.China continue to deepen openness,andreally plays an increasingly important role in the globalization process.China import andexport$4.16trillion, an increase of7.6%in2013,becoming the largest trading power in theworld. However, with China’s rapid economic development and continuous improvement ofpeople’s living standards,Air quality, water pollution, noise pollution, and nowadays hot"haze" and other environmental problems have become increasingly prominent.Discussionson the relationship between environment and the foreign direct investment become more andmore intense.Shandong Province as China’s eastern coastal cities and economic province, has been thefocus province of China’s foreign direct investment.In this paper, we use qualitative andquantitative analysis methods, combined with the latest data, to analyze the current situationof foreign direct investment and the environment in Shandong Province.And use statisticalmethods analyze the correlation between foreign direct investment and environment ofShandong Province.Use relevant data to study the positive and negative effects of foreigndirect investment on the environment in Shandong Province, putting forward measures topromote Coordinated development between the foreign direct investment and environmentalin Shandong Provinces.The main contents of this paper:The first chapter, the background of this research,methods and significance.The second chapter, study the Ricardian theory of comparativeadvantage, the pollution haven hypothesis,"race to the bottom" hypothesis and the environmental Kuznets curve, to find theoretical basis of the study of the relationship betweenforeign direct investment and the environment,and further analyses the mechanism of theenvironmental impact of foreign direct investment.The third chapter, through the analysis ofthe data obtained in Shandong Province, analyze the basic situation of foreign directinvestment and the environment, and study the salient features of foreign direct investment inthe regional distribution and the Industrial layout.The fourth chapter, using Eviews6.0tostudy the econometric analysis between FDI and environmental data in ShandongProvince,conclude the total effect and the Scale effect, structure effect, technological effect ofthe foreign direct investment in shandong province.The fifth chapter, combined with theanalysis and the actual situation in Shandong Province,this paper puts forward the proposal topromote the coordinated development of foreign direct investment and the environment inShandong Province. The sixth chapter, summarize the general idea, the research content andresearch results of this paper.