Analysis Of The Effect Of Foreign Direct Investment On Carbon Emission Of China’s Manufacturing Industry

At present,free trade has become the mainstream trend,capital flows rapidly around the world.FDI has become a key factor in the sustained development of China’s reform and opening up,which promotes economic efficiency in China,as well as the policy reform and social development.On the one hand,,As the world’s factory,China’s manufacturing industry is highly developed,which attracts FDI from all over the world.Most of the FDI invested in China is concentrated in the industrial sector.Furthermore,most of the FDI in the industrial sector is invested in China’s manufacturing sector.On the other hand,although the scale of China’s manufacturing industry has always ranked first in the world,however,the extensive development strategy of high production input,high energy consumption and high pollution emissions has not been eliminated.While FDI promotes the development of manufacturing,it also generates a large amount of carbon dioxide emissions.Such a development model has formed a huge environmental pressure and seriously hindered the sustained and healthy development of China’s economy.Based on panel data from 2005 to 2018 in China’s manufacturing sectors,this paper constructs a benchmark model and examines the impact of FDI on manufacturing carbon emissions.At a deeper level,this dissertation fully considers the heterogeneity of manufacturing industry,which can be divided into low and high energy consumption industries,analyzes the different infuluence,and provides feasible suggestions for promoting the transformation of low-carbon environmental protection in China’s manufacturing industry and achieving carbon peak and carbon neutrality goals.The results show that: from a general point of view,FDI will indeed increase the carbon emissions of China’s manufacturing industry,aggravate the environmental pollution situation,the "pollution paradise" hypothesis still exists in China,China is still in the period from "pollution paradise" to "pollution aura" excessive period.At the same time,the structural and scale effects of carbon emissions were significantly positive,while the technical effects and environmental control effects were significantly negative.From the perspective of industry grouping,Firstly,there are positive technical effects in both the high-energy-consuming industries and the low-energyconsuming industries in China’s manufacturing industry,which have brought about positive technological spillovers.Then,the scale effect of high-energy-consuming industries and lowenergy-consuming industries in China’s manufacturing industry is significantly positive,with FDI increasing,economic scale expanding,carbon emissions further increasing,and environmental pollution intensifying.In addition,the structural effect of low-energy-consuming industries is negative,while the structural effect of high-energy-consuming industries is not obvious.Finally,the environmental regulatory effect of high-energy-consuming FDI has played a positive role,while the environmental regulatory effect of low-energy consumption has not played a significant role.