Comparative Study On Effect Of Foreign Capital And Domestic Capital On Air Pollution In Jiangsu Province

In recent years,with the speeding up of the international capital flows and the global environment pollution intensifies,research on the relationship between foreign direct investment and environment problem is becoming a hot spot in academia.Domestic and foreign scholars research on the influence factors of the environmental pollution widely,and the results show that foreign capital affects the host country environment quality and the resulting hypothesis.Over 30 years of reform and opening up,introduced a large number of foreign capital in Jiangsu province and realize the leap development of the economy.However,with the improvement of per capita income and advancement of technology,foreign capital also brings increasingly serious environmental problems.Especially in recent years,the fog haze phenomena become the news many times in the province,influencing seriously people's normal life.Based on this,based on the panel data of 13 cities in Jiangsu province for example,through the analysis of the present situation description,theory combined with empirical measurement,to explore the domestic and foreign differences of effects of air pollution in Jiangsu province.Firstly,the paper reviews the domestic and foreign relevant literatures.There are three kinds of point of view on the effect of the foreign capital on the environment,the first view is that foreign direct investment has a negative impact on the host country's environment quality,such as "pollution haven" hypothesis,the second view is that foreign direct investment has a active impact on the host country's environment quality,such as "pollution halo effect",the third view is that foreign direct investment has a comprehensive impact on the host country's environment quality,such as decomposition effect theory.The effect of domestic capital on the environment is generally considered that domestic capital has a negative impact on the environment quality.Then the paper describes the sulfur dioxide emissions in Jiangsu province and the present situation of using the domestic and foreign capital,and analyses theoretically scale effect,structure effect,technological effect and environmental regulation effect of the domestic and foreign environment,and the results show that domestic and foreign investment on the quality of the regional environment is uncertain.Secondly,the paper incorporates environmental regulation effect into the classical Grossman decomposition model,classifies the scale effect,structure effect and technology effect according to domestic-funded and foreign-funded enterprise types,selects the panel data of 13 cities of Jiangsu province from 2002 to 2014 as samples,and tests empirically the difference of the varied effects of the domestic and foreign capital on air pollution in Jiangsu province.Through the above theoretical and empirical analysis,this paper draws the following research conclusions: domestic capital exerts a positive scale effect,negative structure effect and insignificant technology effect on industrial sulfur dioxide emissions,while foreign capital has a negative scale effect,positive structure effect and negative technology effect on industrial sulfur dioxide emissions,and the total environmental regulation effect is not significant.Finally,based on the empirical results and the present situation of Jiangsu province,this paper put forwards the following Suggestions: firstly,adhere to the road of new industrialization,support especially the project of high cleanliness and high technical content,and improve the environmental standards of the foreign-owned enterprise;Secondly,improve the primary industry and tertiary industry share of GDP,upgrading industrial structure,and make full use of technology transfer and technology spillover of the foreign-owned enterprise,and set up research and development department for clean technology to improve the level of technology of domestic-owned enterprises;Finally,improve the environmental laws and regulations system,increasing pollution penalties and increase the public environmental awareness.