Foreign Direct Investment And Haze Pollution In China

The Nineteenth National Congress of the Communist Party of China put forward that China is changing from high-speed growth to high-quality development,and that economic transformation and high-quality development have become the focus of current national work.However,haze pollution as the leading environmental pollution problem still exists,constantly threatening people’s health and property safety,which poses a serious challenge to achieve high-quality development.At the same time,previous studies have shown that FDI has a certain degree of impact on the host country’s environment,and China is an important gathering place of global FDI.Therefore,this paper mainly studies the impact of foreign direct investment on haze pollution in China,hoping to understand the relationship between foreign investment and haze pollution,and put forward suggestions on China’s policy of attracting foreign investment and haze control,which will ultimately contribute to the promotion of high-quality development.This paper first expounds the significance,purpose,ideas and methods of the research under the background of high-quality development,then defines the relevant concepts and reviews the literature research of domestic and foreign scholars in three aspects: the impact of FDI on the economy of the host country,the impact of FDI on the environment of the host country and the threshold effect of FDI on the environment,and comments on the historical literature.Secondly,the status quo of FDI and haze pollution in China is introduced in detail through tables and graphs.Then,the main theoretical basis of this study is elaborated,and the scale mechanism,structure mechanism and technical mechanism of FDI’s impact on haze environment are analyzed.At the same time,the income threshold effect,human capital threshold effect and financial development threshold effect of FDI’s impact on haze pollution are proposed,which provide theoretical basis for the following empirical tests.Next,based on the provincial panel data of China from 2013 to 2017,a threshold regression model is constructed to empirically investigate the impact of FDI on haze pollution in host countries.The results show that FDI has a double income threshold effect on haze pollution.When GDP per capita is at a low level,FDI has a significant positive correlation with haze pollution.With the increase of GDP per capita,the positive correlation between FDI and haze pollution decreases until it restrains haze pollution.The impact of FDI on haze pollution has a double human capital threshold effect,when human resources are involved.When capital is at a low level,FDI has a significant positive correlation with haze pollution.With the improvement of human capital level,the positive correlation between FDI and haze pollution decreases until it restrains haze pollution.The impact of FDI on haze pollution has a single threshold effect of financial development.When the level of financial development is low,FDI entry will promote haze pollution.When the level of financial development is low,FDI entry will promote haze pollution.FDI can improve haze pollution when the level of financial development exceeds the threshold.Finally,on the basis of comprehensive consideration of empirical analysis and empirical results,this paper puts forward some suggestions on China’s policy of attracting foreign investment and controlling haze under the "high-quality development stage".