Study on the Optimum Scale and Structure of FDI Based on Environmental Protection

摘要

This paper establishes a nonlinear goal-programming model of China utilizing FDI which bases on the environmental protection in two fields of industries and regions. We take the data of year 2005 as a basis to analyze the situation of the FDI scale and structure. It is suggested that the scale of FDI in pollution-intensive industries introduced by Eastern and Central China has gone beyond the appropriate level, while FDI in Western and Northeastern China can be reasonably introduced for their relatively low amount. This paper also verifies there is an over-attraction of FDI in pollution-intensive industries whereas not enough in clean industries. At last, it presents some relevant policy suggestions to better the relationship between environment and FDI in China.