An Empirical Study On The Impact Of FDI On Environmental Pollution In China

After the reform and opening up in 1978,China adhered to the open policy of going out and introducing.The domestic market was full of vitality and was favored by many foreign-funded enterprises on the international stage.With the increase of foreign investment in China,domestic environmental pollution has been aggravating.In view of this,this paper attempts to clarify the impact of FDI on environmental pollution through a series of studies,and puts forward some countermeasures and suggestions suitable for China's current green development.This paper summarizes and reviews the current research status of relevant literature at home and abroad,systematically combs the basic theory of FDI's impact on environmental pollution,deeply explores the positive and negative effects of FDI on environmental pollution,and detailedly analyses the current situation of FDI and environmental pollution in China as a whole and in the eastern,western and Eastern regions,from the scale effect,structural effect and so on.Based on the panel data of 30 provinces in China from 2010 to 2017,the impact mechanism of FDI on environmental pollution is described in three aspects: technical effect.The environmental pollution indicators such as industrial SO2 emission(FQ),industrial wastewater discharge(FS)and industrial solid waste discharge(FW)are used to study in Grossman and Krueger(1995).On the basis of the model,the environmental regulation factors are added,the model is revised,and the empirical analysis is carried out by adopting the overall and part-afterpart research method.The results show that the increase of FDI has a negative effect on environmental pollution in China.At present,China is still in the left half of the inverted U-shaped curve,and the central and western regions are in line with the overall level of the whole country.It conforms to the pollution paradise hypothesis,while the eastern region is already in the right half of the inverted U-shaped curve.The increase of FDI can improve the environmental pollution and accord with the pollution halo hypothesis.It is suggested that environmental regulation should be strengthened to improve the quality of foreign capital,actively introduce foreign capital to enhance market vitality,control the flow of foreign capital to adjust industrial structure,enhance environmental awareness and advocate green development,which are helpful to achieve the dual objectives of improving the quality of foreign capital and environmental protection.