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The Empirical Analysis on the FDI’s Impact on the Environment in the Delta of Pearl River

Author: ChenMin
Tutor: ChenHongLei
School: Jinan University
Course: International Trade
Keywords: Pearl River Delta Foreign Direct Investment Environment
CLC: F127;X196;F224
Type: Master's thesis
Year: 2010
Downloads: 246
Quote: 1
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Abstract


Foreign Direct Investment (FDI) in recent decades has greatly promoted China's economic development and the improvement of people's living standards . Especially the Pearl River Delta region as the forefront of reform and opening up is by virtue of its own advantages , vigorously to attract foreign investment , to fully take advantage of its advanced technology , equipment and management experience , rapid economic development . However , with economic growth and environmental quality in the Pearl River Delta region has also undergone a change , an overall increase of the \become the urgent need to address the problem , the answer to this question is conducive to the Pearl River Delta region to improve the quality of the utilization of foreign capital and the achievement of sustainable development . In this paper, focusing on the environmental effects of FDI in the Pearl River Delta region to conduct research . First, FDI, economic growth and environmental quality of existing research to sort out the status and characteristics of FDI in the region , followed by statistical analysis , and description of environmental pollution in the region , the last in a brief introduction of the three-stage least squares method ( 3SLS) under the premise of to establish simultaneous equations model , a systematic analysis of the relationship between FDI and the environment of the Pearl River Delta region through empirical methods . The empirical results show that : Overall , foreign direct investment had a negative impact on the ecological environment of the Pearl River Delta region . The direct impact of FDI on Environmental Quality is positive , but not significant ; FDI environment, the scale effect is negative FDI inflows every 1% increase in pollution emissions increase by 0.097% , while the structural effects of FDI conducive to the improvement of the environmental situation of the Pearl River Delta region , but the effect is not obvious , not enough to compensate for the scale effect of environmental degradation is not significant , but also because of the impact of FDI on environmental technological progress in the promotion of the host country and other reasons , the technical effect of FDI and unlike the environmental effects on predicted as positive . In addition , the strengthening of the environmental control of the Pearl River Delta region of FDI inflows did not play a role in containing more important to foreign investors is the broad market , cheap labor and other factors related .

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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