What Is the Role of FDI in Environmental Pollution?-设计

论文导读：onomicdevelopmenthebecomeincreasinglypervasiveandserious.TherelationshipbetweenFDIandenvironmentalpollutionhaspromptedseriousdiscussionamongscholars.Onepopularargumentadheresto“pollutionhenhypothesis,”whereininvestorromdevelopedcountriesareattractedtothe
Abstract: This paper analyzes the distribution patterns and spatial dynamic transitions of foreign direct investment (FDI) and pollution from 2000 to 2009 in China’s provinces by using the comprehensive pollution index (CEPI) and exploratory spatial data analysis. Findings suggest that FDI as well as environmental pollution in our provinces exists an obvious spatial autocorrelation, both of them he remarkable characteristics of path dependence and form different accumulation areas. Currently, the accumulations of high-level FDI correspond to low-level environmental pollution, while the accumulations of low-level FDI are associated with high-level environmental pollution. Furthermore, the authors he empirically analyzed the impact of FDI on China’s environmental pollution by spatial error model (SEM) and spatial lag model (SLM) respectively. Findings suggest that the geographical clustering of FDI has a positive impact on China’s environment, in general, “Pollution Hen Hypothesis” is invalid in China. In addition, there are remarkable differences in the impact of FDI on environmental pollution due to different sources, the foreign capital from offshore financial centers has significantly alleviated pollution in China while that from developed countries in East Asia and the West has played an insignificant role in environmental pollution.
Key words: foreign direct investment (FDI), environmental pollution, spatial autocorrelation, pollution hen
JEL Classifications: F21, O13, R12.

1. Introduction

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Massive FDI inflows into China following its pro-market reforms he remarkably promoted Chinese economic growth. However, economic progress and FDI he brought with worsen environment– air pollution, solid waste, acid rain and other negative side-effects of economic development he become increasingly pervasive and serious. The relationship between FDI and environmental pollution has prompted serious discussion among scholars. One popular argument adheres to “pollution hen hypothesis,” wherein investors from developed countries are attracted to the lax environmental regulations of developing countries. Some overseas scholars he theoretically and empirically studied this hypothesis (Smarzynska and Wei 2001; Keller and Levinson 2002; Dean 2002), some scholars he provided strong evidence to back its relevance for China, they argue that developing countries tend to relax environmental regulations in order to论文导读：ntensivegoods(Markusen1999;ListandCo2000).Continuouslyloweredenvironmentalstandardsleadtoa‘Race-to-theBottomHypothesis,’whereinFDIgoestowherefirmscanoperatewiththegreatestenvironmentalfreedom.Ifpollutionhenhypothesisweretrue,thenFDIwouldcertainlyberespon
attract FDI and speed up resource exploitation. This in turn encourages the production of relatively pollution-intensive goods (Markusen 1999; List and Co 2000). Continuously lowered environmental standards lead to a ‘Race-to-the Bottom Hypothesis,’ wherein FDI goes to where firms can operate with the greatest environmental freedom. If pollution hen hypothesis were true, then FDI would certainly be responsible for exacerbating a host country’s pollution problems (Duaet al. 1997).摘自：7彩论文网本科生毕业论文www.7ctime.com