Study On The Impact Of Foreign Direct Investment On Haze Pollution In China

Since the reform and opening up,China has been the most attractive destination for foreign direct investment,and in recent years has become the largest country in the wo rld to absorb and utilize foreign direct investment.However,with the rapid development of economy and the continuous increase of FDI,China’s ecological environment is deteri orating,of which air pollution is particularly prominent.In recent years,the frequent poll ution of haze damages the health of residents and also seriously affects the normal opera tion of the economy.The relationship between foreign direct investment and environment al(atmospheric)pollution has attracted more and more attention from all walks of life.Therefore,it is of great practical significance to study the impact of foreign direct invest ment on China’s haze pollution.Based on the panel data of 30 provinces,cities and autonomous regions(excluding Tibet,Hong Kong,Macao and Taiwan)in China from 1998 to 2016,this paper establish es a spatial econometric model to analyze the impact of FDI on haze pollution in China.The spatial correlation analysis shows that China’s haze pollution has significant spatial a ggregation,of which the eastern region is mainly high-high aggregation form,the wester n region is mainly low-low aggregation form.Secondly,the results of the spatial lag mo del(SLM),spatial error model(SEM)and space dubin model(SDM)all show that forei gn direct investment has aggravated the haze pollution in China,when foreign direct inv estment increased by 1%,PM2.5 concentration increased by 0.03%.The spatial Dubin m odel(SDM)effect decomposition results show that the effect of FDI on haze pollution i s mainly direct effect,and the effect of space spillover effect on haze pollution is not si gnificant.In addition to the effects of FDI on haze pollution,it was found that haze pol lution is not linearly correlated with the level of economic development,and the increase of urbanization level has played a significant role in improving the haze pollution in bo th local and adjacent areas,and the influence of industrial structure and traffic load on h aze pollution mainly focuses on the indirect effects on the neighboring areas,while the relationship between energy structure and education level and haze pollution is not signifi cant.