Research On Threshold Effect Of FDI On China's Industrial Pollution Emissions

Since reform and opening-up,China has been adhering to the open policy goingout and bringing-in all the time,the economic is developing rapidly.China's domestic market has begun to be favored by many foreign companies internationally.Economic globalization drives transnational capital flows,Among which foreign direct investment has been widely used in all sectors of society.However,with the continuous introduction of FDI,domestic environmental pollution problems have also been accompanied for so many years.The problem of industrial "three wastes" has not been effectively solved.At present,the awareness of environmental protection has gradually increased in various countries,The issue of the relevance of economic development and the environment has attracted continuous attention.In view of this,this article attempts to study the impact of China's FDI on industrial pollution emissions using the latest data in the past 15 years,and then put forward to somesuitable suggestions on the healthy development of the economy.This article analyzes the three threshold effects of per capita income,human capital,and technological innovation on the impact of foreign direct investment on industrial pollution emissions.First,The article sorts out relevant literature on FDI's environmental impact,and make a summary and comment.Secondly,from the current popular "pollution paradise" and "pollution aura" analysis,the article gives three hypotheses that the threshold effect exists.Furthermore,it analyses the status of foreign direct investment and industrial pollution emissions in China and makes a summary on that,the comprehensive index of environmental pollution in 30 provinces and cities of China was calculated using three emission indicators,which psrovide data support for subsequent empirical analysis.Next,the threshold panel regression method is used to analyze the per capita income,human capital,and technological innovation threshold effects of FDI on China's environment.The empirical research in the fourth part of this article shows that when per capita income,human capital,and technological innovation are used as threshold variables,there are double thresholds,double thresholds,and single thresholds.Thismeans that at a low income level,the government ignored the problem of environmental pollution in the process of accelerating economic development.However,when the per capita income level reached a certain level,the government began to intervene in industrial pollution emissions from enterprises.With the increase of direct investment,environmental pollution is under better control and industrial pollution emissions are reducing continuously.When human capital is at a low stage,the increase in FDI will lead to environmental degradation.Because the level of human capital is far from being sufficient to absorb technological spillovers brought by FDI.With the continuous improvement of human capital,the degree of environmental degradation has gradually improved,but there are still significant negative effects.Only when the level of human capital gradually rises to a certain level,the investment location can absorb technology spillovers more fully,and FDI can drive local companies to improve pollution technology.At this time,the continuous introduction of FDI has a significant impact on local industrial pollution emissions improve effect.Regarding technological innovation,before its level reached a certain level,technological innovation resources in environmental regulation were not fully tapped.At this time,FDI and industrial pollution emissions are still positively relatedOnly when the level of technological innovation reaches a certain stage,more clean technological innovations are used to increase the FDI and promote the reduction of industrial pollution emissions,will the local industrial pollution environment be improved.