Environment Impact Analysis Of Heterogeneous FDI On China

Since the reform and opening up,China’s economic development has entered a fast lane and its economic volume has increased rapidly.With the development of economic globalization,the scale of foreign direct investment introduced by China has also increased quickly.However,the environment issues are becoming more and more prominent.Such as water pollution,air pollution,acid rain,ozone layer destruction and smog have caused a certain negative impact on people’s health and life.All over the world we can see that China’s carbon emissions still account for a larger proportion,almost accounting for 20%.The 2016 China Environmental Status Bulletin also showed that during the environmental quality inspections of 338 prefecture-level cities in 2006,only 84 cities up to environmental standards,accounting for 24.9%of the total number of cities;and the number of cities which exceed standard of the air quality is 254,accounting for 75.1%.In the aspect of water pollution,about 6,124 groundwater quality monitoring points showed that only 10.1%of the water quality was excellent,and the combined proportion of poor water quality and poor quality reached 60.1%.These phenomena show that China’s environmental problems are more serious,and environmental issues have increasingly become a hot topic to people.Many previous studies have already analyzed the relationship between foreign direct investment in China and the environment.Based on previous studies,this paper further analyzes the improvement of the model and the innovation of perspectives.First of all,this paper described the background and research significance of the selected topic,secondly on the basis of Grossman and Krueger’s(1991)environmental effects theory,this article decomposed the environmental effects theory and analyzed the environmental effects combined with the corresponding theory of foreign direct investment.Next the article introduce the problems about our natural environment,and set up a simultaneous equations model with the panel data of 30 provinces in our country from 1998 to 2015.Finally,we get the conclusion that the negative effect of joint venture FDI is more than that of sole proprietorship FDI and the more advanced areas have the highest overall level of pollution.In response to the above conclusions,this paper gives some corresponding suggestions at last.