The Impact Of Foreign Direct Investment On Environmental Pollution From The Perspective Of Fiscal Decentralization

Since China’s accession to the WTO in 2001,China’s actual use of foreign investment has increased to a large extent,in 2006,China’s actual use of foreign investment amounted to 63.021 billion US dollars,and by 2015 foreign investment reached 126.667 billion US dollars,Has been doubled.The role of foreign investment in China’s economic development is becoming more and more important.In addition,since the fiscal decentralization reform in 1996,the central government has decentralized financial resources,local governments began to have their own financial resources,these resources on the one hand for the local economic development has made contributions,and the decentralization of the financial revenue and expenditure And political promotion under the dual pressures to promote the local government to start a fierce competition between foreign investment,the pursuit of foreign investment makes the local government expenditure structure presents a "heavy infrastructure,light public service" obvious distortions,environmental pollution and other people’s urgent concern The problem is often overlooked.Based on the provincial panel data of 31 provinces and cities in China from 2006 to 2015,this paper analyzes the relationship between local government competition and environmental pollution under the fiscal decentralization system by constructing dynamic spatial panel model.In addition,this paper divides the developed regions(eastern),the more developed regions(the middle)and the less developed regions(western)according to the clustering analysis,in addition to the regression analysis of the national sample data,to capture the possible financial subdivision under different economic development levels The Difference of FDI ’s Influence on Environmental Pollution from the Perspective of Right.From the perspective of a new perspective-fiscal decentralization perspective to explore the impact of FDI on regional environmental pollution effects,first of all in theory,help us from a new perspective to interpret the current environmental pollution problems;In addition,the practice can be clear FDI on regional environmental pollution Which can provide reference and reference for the central government to formulate the green performance appraisal mechanism considering the local environmental quality,which is of great practical significance to the realization of the sustainable development of the current environmental problems.The empirical results show that under the fiscal decentralization system,the local government’s strategic competition to introduce foreign direct investment has exacerbated environmental pollution.Under the eastern fiscal decentralization system,local governments have little impact on environmental pollution through competitive behavior of foreign direct investment,while the central and western regions have strengthened the impact of environmental pollution on foreign direct investment.At the same time,the FDI competition under the decentralization system mainly affects the regional environmental quality through the following two channels: on the one hand,the production activities of FDI itself have a significant impact on the local environmental quality,and the foreign investment brings green production technology And governance experience will help improve the efficiency of domestic environmental pollution control and reduce the total amount of pollution emissions.On the other hand,FDI indirectly affects the environment by influencing the output or scale of economic activity,which is mainly manifested in the political promotion and the decentralized system under economic incentives weakening the growth effect of FDI,and the local government’s excessive attention to GDP makes Regional vicious competition is becoming increasingly fierce.The government can improve the above situation by adjusting the performance appraisal methods of local officials,improving China’s fiscal decentralization system,formulating reasonable and effective foreign investment policies,optimizing the industrial structure,strengthening public awareness of environmental protection so that more public participation in environmental supervision and so on.