The impact of foreign capital inflows and trade expansion on integrated pollutant discharge from China: Regional differences

Abstract

This article is based on the years from 1991 to 2012 of the nine categories of the provincial pollutant discharge indexes of China, uses the 'vertical and horizontal method' to calculate the comprehensive indexes that can fully measure the provincial pollutant discharge situation of China, establishes a dynamic inter-provincial panel data regression model and makes an empirical test on the relationship among foreign direct investments, foreign trade and pollutant discharge these three factors. The results show that foreign direct investment and foreign trade in different regions have a different impact on pollutant discharge. Therefore, local governments should at all levels be based on local conditions to attract foreign investment and develop foreign trade for the targeted optimization of the structure of introducing foreign investment and improving the quality of foreign trade growth, thus improving the overall situation of China's pollutant discharge.