The Impact Of FDI Inflow On Environmental Pollution

After the further influence of economic globalization,the economic interaction between countries is more frequent and the degree of mutual influence deepens.In the field of international investment,China has been the largest developing country in the past twenty years,and its remarkable economic growth and development have attracted world investors' attention.At the same time,the problem of environmental pollution gradually emerged as an important issue for the long-term sustainable development of the country.At the same time,how to maintain the high speed of economic development and how to maintain the high speed of economic development.Protecting fragile ecological civilization is no longer being further damaged and has risen to the height of national strategy.Then,whether the introduction of international direct investment also has a related impact on the situation of domestic environmental pollution.Whether foreign direct investment has brought more clean technology,whether the pollution intensive industry is transferred to the local,whether there is a competition between the provinces and cities to reduce the environmental standards and whether the pollution situation is subject to the situation.The influence of neighboring provinces and cities is whether there is a pollution Club effect between provinces and cities.It has important reference for national and local governments to attract foreign investment and formulate environmental protection policies.Using the dynamic model and the system GMM method,this paper uses the panel data of 31 provinces and autonomous regions in China for 2005-2016 years to study the influence of FDI on environmental pollution in China,and uses the spatial weighting matrix in spatial econometrics to explore whether the emission of pollutants has an interactive effect between provinces and cities.It is concluded that FDI has no significant impact on the current emission of pollutants,but the impact coefficient is significantly negative after the lag phase one period,which indicates that the foreign direct investment will have a certain mitigation effect on the emission of pollutants.However,the effect of Technology Spillover and demonstration competition will require a definite time,so the beginning of one year will begin.There is a gradual impact.Pollutant emissions have inertia,and the total amount of pollutants discharged on the previous period is large.The pollutant emissions in the next stage will also tend to be seriously polluted on the original scale.The interprovincial interaction items are positive,indicating that there is pollution input and interaction between provinces.It also verified the existence of scale effect,technological effect and structural effect in China's inter provincial data.On the whole,the empirical research supports the theoretical reasoning that FDI can improve the environmental pollution,but it needs a certain time of technological spillover and diffusion to produce effect on local enterprises;the pollution emission of the region is affected by time and space simultaneously.On the one hand,the pollution emission is strongly influenced by the previous period,which has certain inertia.Environmental regulations and policies which are short term or frequently changed will not produce effective governance.On the other hand,due to the flow of rivers and air on the border line,the competition of attracting investment may be fierce in the neighboring provinces,and the "race effect" is formed to reduce the standard of pollutant discharge.The level of pollution emission in the region is also influenced by the neighboring provinces,and there is a "pollution club" between provinces.In the area of exploration,the eastern region FDI in the current period resulted in the improvement of environmental pollution,and the quality of foreign capital in the central and western regions is still at a low level.The phenomenon of "pollution club" between the provinces in the eastern region is not strong,which indicates that the influx of control pollutants in the eastern region is stronger,and the blind period of the only heavy scale and the growth rate in the early stage of reform and opening up has passed.The "club" phenomenon exists between the provinces in the central and western regions.The degree of pollution in each province is similar to that of the surrounding provinces and is strongly influenced.It is necessary to promote the joint pollution control in the central and western regions.Under the division of the economic zone,the pollution synergism among the provinces and cities of the Bohai economic circle with Beijing Tianjin Hebei as the core is strong,and the pollution synergism between the provinces and cities of the Yangtze River Delta economic circle is weak.After empirical research and analysis,it is suggested to encourage the introduction of high quality foreign direct investment,actively guide local enterprises and foreign invested enterprises in all aspects of technical cooperation and exchange,and maintain the sustainability of environmental policies in the five to ten year strategy,and strengthen environmental pollution standards and policy synergies within the region uniformity.