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The Influence and Countermeasure of Importing FDI to Developing the Low Carbon Economy

Author: FengXueYun
Tutor: ChengJian
School: Hebei University of Economics
Course: International Trade
Keywords: foreign direct investment low carbon economy influence countermeasure
CLC: F124;F205
Type: Master's thesis
Year: 2011
Downloads: 177
Quote: 0
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The current development of low carbon economy has become a global consensus, the capital flows and the relationship between the developments of low carbon economy is getting more concern from all over the world. FDI (foreign direct investment) as one of the factors of production to a country’s economy, promotes local economic development while at the same time its negative effect on both environmental field and energy field becomes much more obvious, threatening the development of the host country’s low carbon economy. Since the reform and opening up of China, great achievements have been made while utilizing foreign capital, but the environmental quality of entire community and energy reserves are dramatically reduced. Considering that, this thesis researches the influences that exerting from introducing FDI to the development of low carbon economy on the basis of the former researches in both domestic and abroad by combining the theoretical analysis with empirical analyses. The central meaning of writing this article is to explore how to coordinate the relationship between FDI and low carbon economy development by analyzing the impact of the development of low carbon economy, and then provide useful policy recommendations.This article reviews the research on the relationship between FDI and environmental pollution in recent years, and then analyzes the change of total foreign direct investment since the reform and opening up, and then analyzes the reality of our country’s environmental pollution and resources depletion. This article analyzes all kinds of probable influences that come from the introducing of FDI in theory, and then draws to a conclusion that the emphasis is that introducing the FDI may cause negative effects to our country. This article constructs an econometric model by using the associated data from 1993 to 2008, and the outcome of the econometric model confirms earlier speculation.Finally, this article analyzes the reason why introducing FDI may cause the environmental pollution and the depletion of resources. And then make suggestions by analyzing the recent situation of economy and society. This article holds the view that host country and multinational corporations should make joint efforts to reduce the environmental pollution and the depletion of resources which are caused by the introducing of FDI, by using the not only economic means but also law and policy. We must promote the balanced development of introducing FDI and developing the low carbon economy, and then China will embarking on a new path of comprehensive, coordinated and sustainable Development.

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CLC: > Economic > Economic planning and management > Management of National Economy > Management of resources,environment and ecology
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