Research On The Environmental Effect Of FDI In The Western Taiwan Straits Economic Zone

With the development of economic globalization,the speed of international capital flows is accelerating and the global environment is deteriorating.The correlation between FDI and environment is becoming more and more obvious,becoming one of the hot issues.China is in the stage of rapid economic development,and as China’s rapid economic developing area,the economic zone on the west side is listed as foreign direct investment key area.With the development of foreign direct investment in the economic zone on the west side,the environmental situation has also changed.Correctly handle the relationship between FDI and environmental pollution of the western Taiwan Straits economic zone,which is of great significance to promote the economic and social sustainable development of the western Taiwan Straits economic zone.This paper is based on the environmental effects of foreign direct investment in the western Taiwan Straits economic zone.Firstly,the literature on the relationship between foreign direct investment and environmental pollution is reviewed and collated.According to the existing theoretical research,it is determined that there is a certain correlation between foreign direct investment and environment,but it is uncertain that the foreign direct investment increase or reduce the environmental pollution in the western Taiwan Straits economic zone.Secondly,using the latest data,the qualitative analysis method is used to analyze the scale of foreign direct investment in the western Taiwan Straits economic zone,finding that the absorption of foreign direct investment in Fujian accounts for more than 60%.And then analyze the source of foreign direct investment,industrial distribution and atmospheric,water and solid waste environmental pollution situation.Thirdly,using the quantitative analysis method,20 cities in the western Taiwan Straits economic zone are selected as the sample objects.The actual use of foreign direct investment is on behalf of the level of foreign direct investment,and the discharge of industrial SO2,industrial smoke,industrial wastewater and industrial solid waste is on behalf of the environmental conditions.Then,based on the perspective of the regional economic zone,Fujian Province and non-Fujian provinces,the panel data model is used to analyze the correlation between FDI and environmental status.The empirical results show that foreign direct investment hinders the discharge of the industrial SO2,industrial smoke and industrial solid waste in the western Taiwan Straits economic zone,but has no obvious effect on industrial wastewater discharge,indicating that the impact of the foreign direct investment in the western Taiwan Straits economic zone is in line with the "pollution halo" theory.Per capita regional GDP promotes the discharge of pollutants,and per capita GDP of the second term inhibits the discharge of pollutants,indicating that the impact of the economic development of the western Taiwan Straits economic zone on the environment was"inverted U-type" distribution.Motor vehicles,industrial structure,housing completion area and government activities generally have a negative effect on the environmental conditions in the western Taiwan Straits economic zone,while technology developing is beneficial to the environmental conditions.Finally,based on this conclusion,this paper puts forward some policy suggestion in order to promote the coordinated development of FDI and environment.