THE IMPACT OF FOREIGN DIRECT INVESTMENT ON CHINAS ENVIRONMENT
The scale of Foreign Direct Investment (FDI) in China is expanding each year, which helps to promote Chinas economic growth.However, its impact on Chinas environment is increasingly concerned by the public.We find that FDI has scale effect, structural effect and technical effect on Chinas environment.The rising FDI and the resulting economic growth would lead to more pollutants, that is, FDI may have a negative scale effect, while the rise in the proportion of FDI in high-tech industries will have a positive structural effect.Furthermore, FDI technology spillovers will promote the progress of Chinas environmental technology, improve energy and resource utilization efficiency and reduce the resource depletion and pollution under the same output.We test empirically these effects based on the province-level data by utilizing variables as the proxies of the environmental policy and the technology, which is different from the existing literature.Our results indicate that the FDI scale effect has negative influence on the environment, while the FDI structural and technical effects impact positively on the environment.The reason may lie in that current environmental policies have not played a significant role in improving the environment.The findings have some policy implications for Chinese government to guide the FDI flow, optimize the industrial structure, and strengthen supervision to minimize negative impact of FDI on environment.
FDI Environment Pollution Scale Effect Structural Effect Technology Effect
Dongwen Tian Xin Wang Lijie Tian
School of Economics and Management, Beihang University, Beijing 100191
国际会议
The 12th International Conference on Industrial Management(第十二届工业管理国际会议)
成都
英文
251-254
2014-09-03（万方平台首次上网日期，不代表论文的发表时间）