The Influence Of Environmental Regulation On China’s Foreign Direct Investment

As China’s economic situation has been going higher in recent years,many foreign enterprises have been attract to invest in China,which has also caused a series of environmental problems,such as "haze","sewage discharge","industrial exhaust emission" and so on.This paper studies the relationship between environmental regulation and foreign direct investment by previous scholars,analyzes and discusses the impact of current environmental regulation level on FDI inflows in China,and gives some opinions and Suggestions.The writer think it is beneficial to study how to do a good job in environmental regulation,foreign investment in China and the development of China’s economy.This paper analyzes the influence of environmental regulation on FDI from the whole aspect.First,in addition to the theoretical analysis,then empirical analysis to test the proof,and finally put forward the corresponding policy.Firstly,by collecting and reading a large number of domestic and foreign literatures and reviewing their relevant theories,then combining with the current situation of China’s environmental regulation and foreign direct investment,using quantitative economics and regression model to analyzed the relationship between China’s environmental regulation and foreign direct investment,and relevant conclusions are drawn and summarized.In this paper,283 cities at the prefecture-level and above were selected in China,and urban data were taken as samples to analyze the impact of China’s environmental regulations on foreign direct investment in China from the urban level.This paper analyzes the impact mechanism of environmental regulation on foreign direct investment(FDI)from the implementation of environmental policies.Through empirical research on data at the city level,there were three conclusions had been found: firstly,the implementation of environmental policies has a significant positive impact on FDI;secondly,there is no significant correlation between FDI and per capita GDP of local cities and average wages of employees.Lastly,China’s eastern and western regions,the Yangtze River delta economic zone,the Pearl River delta economic zone and the Beijing-Tianjin-Hebei Metropolitan Region have different environmental regulations on FDI.Based on the results of empirical study,according to China’s current economic situation and the foreign investment environment,put forward the relevant policy recommendations,expect China’s ecological environment protection and coordination between foreign direct investment,steady development promote the transformation of industrial structure optimization,reasonable utilization of foreign capital,more investment model for the sustainable development of green building.