Influence Study Of Foreign Investment To Environmental Pollution

Along with China’s policy of going out and introducing,the scale of FDI in China has increased.Besides the economic development,the relationship between environmental pollution and FDI is also worth studying.It is of practical significance to study the influence of attracting foreign capital on the environmental pollution in Suzhou,for Suzhou is a strong attraction for foreign capital amongst China.Moreover,this study will be helpful for Suzhou to adjust and reform its policies in attracting FDI.Specifically,based on the literature review,this paper analyzes the relationship between FDI and environmental pollution.The impact of attracting foreign investment on environmental pollution is divided into two categories: positive and negative.On the basis of hypothesis,this paper then analyzes the situation of FDI and environmental pollution in Suzhou in the last ten years and makes use of the empirical model for causality test and empirical analysis.The conclusion shows that there was a significant negative correlation between FDI and the three main industrial waste in Suzhou.Among them,industrial waste discharge in Suzhou city is increased with the introduction of foreign capital.The emission of industrial waste water in Kunshan is rising with attracting foreign capital,which is in line with the hypothesis of pollution refuge.The emissions of other industrial wastes decrease with the increase of foreign investment in Suzhou,which is consistent with the pollution halo hypothesis.And according to the conclusion,a few suggestions towards the FDI in Suzhou has been raised.