The Impact Of FDI In Services On Regional Environmental Pollution

Since the reform and opening up,with the continuous development of service industry and the gradual deepening of opening up in various regions of China,the focus of Foreign Direct Investment(FDI)has shifted from manufacturing industry to service industry.Services FDI has gradually become an important force to promote regional development.Meanwhile,the contradiction between various environmental pollution caused by economic and social development and people's demand for a better life has become increasingly prominent.A large number of studies have shown that FDI will have a positive or negative impact on China's environmental pollution,but the impact of Services FDI on environmental pollution is not yet known.Therefore,it is of great significance to study the impact of Services FDI on China's regional environmental pollution to deepen the opening up of service industry,build beautiful China,and realize the great Chinese dream.The key points of this paper are as follows: First of all,this paper analyzes the conduction paths of Services FDI affecting regional environmental pollution on the basis of theoretical research.Services FDI will simultaneously affect environmental pollution through scale effect,structure effect,technique effect and agglomeration effect,and the final result depends on the strength of these four effects.At the same time,this paper describes the distribution of China's Services FDI and detailedly analyzes the regional environmental pollution by selecting the relevant indicators of sulfur dioxide,waste water and common industrial solid waste.Moreover,2017 is taken as an example to measure the degree of coupling and coordination between Services FDI and three environmental pollutants.And then,it is found that there is no coordination between the two in various regions of China,and Services FDI has a closer relationship with environmental pollution in the eastern region.Subsequently,this paper empirically tests the impact of Services FDI on three environmental pollutants by selecting the panel data of 25 provinces in China from 2007 to 2017,constructing a dynamic panel data model and using the Two-step System GMM Estimation Method.The regression results show that Services FDI has a significant negative correlation with sulfur dioxide emissions,waste water emissions and common industrial solid waste production,indicating that Services FDI is conducive to improving China's environmental condition.Based on the above analysis,this paper proposes to improve regional environmental condition through optimizing Services FDI from major two aspects: one is to create a good domestic investmentenvironment to attract Services FDI;the other is to pay more attention to improving the quality of Services FDI in terms of introduction and utilization.From these two aspects,this paper puts forward six specific suggestions and measures.However,it should also be noted that not only should Services FDI be optimized as a whole,but also implement relevant measures according to local conditions in that the gap of comprehensive competitiveness in Services FDI is too large between the East and the Midwest.