| The inflow of foreign direct investment into China not only alleviates the shortage of capital problems in the process of China's economic development,but also brings advanced technology and management experiences,which has made great contribution to the development of China's export-oriented economy.President Xi Jinping stressed that "China's foreign investment policy will not change,the protection on legitimate rights and interests of foreign-invested enterprises will not change,the direction of providing better service for foreign enterprises in China will not change" on a number of international occasions;Premier Li Keqiang also pointed out that China should always being the most attractive hot land for foreign investment.FDI inflows dropped significantly globally in 2016,especially in Asia,but China's foreign investment maintain steady growth,about 139 billion US dollars,which was 2.3% greater than previous year,the highest ranking in historical data,and the third of the world just behind the United States and United Kingdom.At the same time,China continues to optimize the structure of making use to foreign investment,keep growing that improved quality,services of the inflows especially high value-added services(such as research and development)and high-tech manufacturing industries,and foreign capital continue to shift from the traditional labor-intensive industries.On the other hand,with the continuously deepening of China's foreign capital managing system and the introducing of "measures about expanding the positive use of foreign capital for opening up to the outside world",the areas of foreign investment in China will further widen,inject new vitality into foreign investment.China still is one of the most attractive destinations for foreign investment in the future.However,from the geographical distribution,foreign direct investment has shown a "High East and Low West" spatial pattern.This disequilibrium distribution pattern objectively widen the economic gap between China's eastern,central and western regions,impede China's sustained,healthy,and harmonious development of economy.Therefore,in order to maximize the regional characteristics and advantages,deepen the opening and exchange of various regions and promote regional economic harmonious development,it is essential to systematically studies the differences among the factors,which influencing the distribution of FDI in various regions of China,and explores the current strategy of attracting foreign investment in different regions of China.Studies have shown that environmental regulation intensity will affect the distribution of FDI through different channels,one of which is the agglomeration economy.Taking into account the complexity and the difficulty to observe of environmental regulation policy and the agglomeration economy,its influence on the distribution of FDI may be great.According to previous research results,environmental regulation,agglomeration economy will influence the location of foreign investment,and environmental regulation itself will also affect the agglomeration economy.Therefore,it is necessary to consider the impact of environmental regulation intensity on the distribution of FDI in the presence of agglomeration economy,and analyze the impact mechanism of environmental regulation,agglomeration economy and FDI location distribution.In this paper,we refer to the method of Zhao's paper in 2006 to measure the environmental regulation intensity of 286 prefecture-level cities and above from 2008 to 2014,and the industry cluster degree of the manufacturing industry,services industry and various industry in service industry of above-mentioned cities.Secondly,this paper analyzes the theoretical mechanism of environmental regulation intensity,agglomeration economy and FDI location distribution,and makes several key assumptions to be verified.Thirdly,according to the theoretical analysis,the empirical model which adding the interactive variable is established,and the regression model of the fixed effect model is used to analyze the city panel data from 2008 to 2014.Finally,according to the empirical results obtained,put forward several related policy recommendations according to the empirical outcomes.The main conclusions of this paper are as follows:(1)FDI in China's sub-national region has obvious center-periphery distribution,the Yangtze River Delta,Pearl River Delta,Beijing-Tianjin-Hebei economic circle as the main representative of the formation of this distribution,and it is a dynamic process;(2)Overall,the higher environmental regulation standards are not conducive to foreign investment,and from sub-regional view,the eastern region of environmental regulation intensity and FDI inflow was positively correlated which meet with the "Porter Hypothesis",however the higher intensity of environmental regulation inducing regional FDI inflows reduced in the central and western regions;(3)Agglomeration economy has a beneficial effect on the inflow of FDI,and the contribution of service industry to FDI inflow is greater than that of manufacturing industry,and the contribution of production service industry and public service industry in service industry is bigger;(4)The impact of environmental regulation on the inflow of FDI through agglomeration can be weakened,that is,overall,the negative impact of higher environmental regulation intensity on FDI inflows will be reduced due to the existence of agglomeration economy. |
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