Empirical Research Of The Impact Of Environmental Regulation On FDI Decision

Since the reform and opening up,China’s economy has experienced a leap of development,attract foreign capital has become an important part of China’s opening up,the inflow of FDI in China increased from S124 billion 82 million in 2006 to S249 billion 859 million in 2015,ten years between FDI inflows have doubled in China to attract FDI inflows by the international political and economic environment fluctuates obviously,especially when the developed countries have a serious economic crisis,but the overall trend is still rising.Long term use of foreign capital has played an important role in promoting China’s rapid economic development,to provide financial and technical support for China’s economic development,effectively promote China’s industrialization and modernization process,China has become a "world factory".It is worth noting that the inflow of foreign capital is a "double-edged sword",in promoting China’s economic development has also brought serious environmental problems,environmental governance in China increased the difficulty of the work,hindered the sustainable development of our country’s road,is not conducive to the healthy and rapid development of China’s economy.With the domestic environmental problems continue to deepen,in order to attract foreign capital and early to relax the threshold of the era of the past,the government started to pay attention to environmental protection and governance,considering that China has not realized industrialization,economic development is still in the rising period,the contradiction between economic growth and environmental protection is more difficult to relax.China’s long-term adherence to the path of sustainable development,and actively promote the construction of ecological civilization in Scientific Outlook on Development under the guidance of the transformation of economic development,is committed to the development of green economy,low-carbon economy and circular economy.The eighteen meeting of the party’s special emphasis on the construction of ecological civilization,puts forward to adhere to the basic state policy of conserving resources and protect the environment,pay attention to the development of environmental protection industry and green industry,in 2014 the country began to carry out "the capacity to" excess capacity of high pollution and high energy consuming enterprises is bound to be compressed in the future development of space,it will also to affect China’s FDI inflows.Under the new economic normal state,stressed the importance of sustainable development and ecological civilization construction,in this background,to study the influence of environmental regulation on FDI in China is very meaningful.In this paper,the influence of environmental regulation on FDI decision is analyzed by the combination of theory and practice.The article mainly has six parts:(1)Introduction:introduces the background and significance,especially under the new economic normal,more and more attention to environmental protection,the research significance of the impact of environmental regulation on FDI;the literature review mainly focus on the analysis of the impact of environmental regulations on FDI mechanism and empirical,various views exist in the academic circle;research the content is the structure of the article;research methods,methods of combining theory and empirical study;the last is innovation and shortcomings;(2)Describes the basic theory of environmental regulation,mainly introduced the"Pollution Haven Hypothesis" the "Potter hypothesis" and "pollution halo hypothesis of the basic content,and expounds the application of these theories in the article;(3)From the cost of enterprise profit,innovation mechanism and investment environment of the three aspects introduced the mechanism analysis of the impact of environmental regulation policy of FDI,which is based on the analysis of the "Pollution Haven Hypothesis","Potter hypothesis" on the understanding;(4)First introduced the current development of the FDI OECD in the developed countries,then briefly analyzes the practical process of environmental regulation in the United States,the European Union and Japan,finally through the empirical analysis to explore the effects of OECD in developed countries environmental regulations on FDI inflows;(5)Firstly,this paper introduces the present situation of FDI in China,and then introduces the practice of environmental regulation in China,and finally analyzes the impact of environmental regulation policy on FDI inflow in China’s industrial manufacturing industry;(6)Summary of the full text,according to the fifth part of the empirical results from the adjustment of environmental regulation policy,the domestic market potential to develop and encourage technological innovation,the three aspects of the relevant policy recommendations.Research on the impact of environmental regulation on China FDI mainly focuses on the choice of the location of FDI,which involves not much research on manufacturing industry,this is the innovation of this paper,the data used in the article is relatively new,China’s manufacturing industry data mining is used by 2005-2014.The purpose is the empirical research data and background,the combination of policy changes.The research results of domestic reference are concentrated on location analysis of FDI investment,rather than industry research,the most important reason is the industrial manufacturing industry data are relatively scarce,especially FDI data has never been publicly in the Yearbook,therefore in the data selection on the limitations of big data,may not be able to fully to reflect the basic situation of China industrial manufacturing industry,this is the inadequacy of this thesis.