FDI、Environmental Pollution And Economic Growth:An Estimation Based On The Panel Data Simultaneous Equations Model

With the development of the reform,China’s economy has made great strides forward.which has attracting a large number overseas direct investment.In 2014,the amount of FDI actual utilized in China has reached 1195.6156 billion US dollars,ranking first in the world.China has been a hot country favored by other countries and regions in investment.The entry of FDI has injected new vitality into China’s economy,and our country’s economy has undergone a sustained high growth stage.Along with the development of economy,the ecological environment of our country is deteriorating day by day.How to coordinate FDI,environmental pollution,and economic development has become the subject of many scholars’ research.what effects of FDI has on environmental pollution and economic growth,or environmental pollution does on FDI and economic growth,or else adverse effects ?Deep theoretical research and demonstration on the above problems will be presented in this paper.This paper first combines and summarizes the domestic and foreign literature related to FDI,environmental pollution and economic growth.Secondly,through the charts and the data respectively can it reflect the present situation of our country’s FDI,the environment pollution as well as the economic growth.Then,the interactive effects of FDI on economic growth,FDI on environmental pollution and economic growth on environmental pollution are studied theoretically.The interaction mechanism between FDI and economic growth is also analyzed based on the above theories.Finally,the simultaneous equations of panel model are established,and 3SLS is used to do the empirical analysis.The results show that :)1(China ’s economic growth is still on the left side of the long-term "U"-type environmental Kuznets curve,and the pollution of environment has a positive effect on economic growth as well as our country still exists in the environment for economic phenomenon.(2)The inflow of FDI has systematically threatened the environment of our country,and our country has become a "pollution haven" and the regional environmental factors are not the important factors to be taken into account when choosing FDI location.)3(FDI promotes economic growth,while the economic scale of the region also affected the entry of FDI.This conclusion provides a reliable theoretical and empirical support for the economicgrowth.Therefore,in the future development of China’s economy,optimizing the way of economic growth,deepening marketzation and supply side reform,creating a high-quality soft environment to attract multinational companies to be stationed in,such as a good market,finance and talent,improving the environment,while strengthening the government’s policy of precision control,are new ideas that can adapt to China’s economic development.