The Impact of FDI on Haze Pollution—Based on the Local Government’s Introduction of FDI

Abstract

This paper uses the provincial data of PM2.5, FDI, population and science and technology input from 31 provinces (excluding Hong Kong, Macao and Taiwan) from 2013 to 2016 to establish the panel data. Based on the STIRPAT (Stochastic Impacts by Regression on Population, Affluence and Technology) model and Cobb-Douglas production function, this paper uses the Generalized Method of Moments model to conduct a regression analysis of China’s haze pollution. The results show that FDI (foreign direct investment) will have a halo effect. Moreover, the introduction of more excellent FDI and increased investment in science and technology can improve the status of haze pollution in China. The population has a significant negative effect on PM2.5 concentrations. Therefore, based on the above analysis and conclusions, this paper proposes corresponding suggestions to contribute to the improvement of the status of haze pollution in China.