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A Study on the Relationship between Foreign Direct Investment & Environmental Quality in China

Author: LiuHongMei
Tutor: HanMinChun
School: Huazhong University of Science and Technology
Course: International Trade
Keywords: Environmental Quality Foreign direct investment (FDI) Economies of scale Structural effects Technical effect
CLC: F832.6
Type: Master's thesis
Year: 2006
Downloads: 340
Quote: 3
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Abstract


To attract foreign direct investment since the reform and opening up , China has attracted worldwide attention , the role of China's economic growth is no doubt . However, while China's rapid economic growth accompanied by equally remarkable environmental degradation . Absorb large amounts of foreign direct investment in China 's environmental quality will deteriorate further , this article will focus on the systematic study . The paper first describes the purpose and significance of the synthesis and evaluation of environmental issues , FDI and environmental issues , the status of the theoretical and empirical research , and put forward the research content and ideas ; then theoretically the general relationship between FDI and environmental quality analysis , systems analysis FDI performance of the mechanism of the environment , economies of scale and structural effects , technology effects , the impact of FDI on the environment is a variety of effects together ; departure from the trend of environmental quality in China at the same time , China 's absorption of foreign direct scale effects, structural effects of foreign direct investment to China 's environmental quality and the effect of technology investment in the status quo analysis of data and charts , including economies of scale are the main negative effects , structural effects and technical effects are mainly manifested as a positive effect ; on this basis , using the panel data of 29 provinces and cities in China from 1992 to 2002, foreign direct investment and industrial pollution emissions using a fixed effects model the relationship between foreign direct investment and environmental quality generalized least squares regression , regression results show that foreign direct a significant negative correlation between investment and industrial pollution emissions , foreign direct investment inflow has a positive effect on China 's environmental quality improvement , and a brief analysis of the cause . This article system from the perspectives of both theoretical and empirical analysis of the impact of FDI on the quality of the environment in China , concluded : In the long term , FDI flows into the overall impact on China 's environment is favorable .

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CLC: > Economic > Fiscal, monetary > Finance, banking > China's financial,banking > Exchange rate,foreign financial relations
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