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An Empirical Analysis of FDI and Environmental Pollution Based on the Data of Guangdong Province(1987～2008)

LU Ze-hui

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Abstract

Based on the data of FDI and industrial Three Wastes emissions in Guangdong province(1987～2008),this paper makes an empirical analysis of the causal relationship between FDI and environmental pollution in Guangdong province.The results show that the growth of FDI is the Granger cause for the growth of industrial emissions and industrial solid wastes,but is not the Granger cause for the growth of industrial wastewater.In view of this result,this paper has conducted a further study,and proposes some measures to optimize FDI and reduce environmental pollution.

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What this paper is about

Based on the data of FDI and industrial Three Wastes emissions in Guangdong province(1987～2008),this paper makes an empirical analysis of the causal relationship between FDI and environmental pollution in Guangdong province.The results show that the growth of FDI is the Granger cause for the growth of industrial emissions and industrial solid wastes,but is not the Granger cause for the growth of industrial wastewater.In view of this result,this paper has conducted a further study,and proposes some measures to optimize FDI and reduce environmental pollution.

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Available abstract

Based on the data of FDI and industrial Three Wastes emissions in Guangdong province(1987～2008),this paper makes an empirical analysis of the causal relationship between FDI and environmental pollution in Guangdong province.The results show that the growth of FDI is the Granger cause for the growth of industrial emissions and industrial solid wastes,but is not the Granger cause for the growth of industrial wastewater.In view of this result,this paper has conducted a further study,and proposes some measures to optimize FDI and reduce environmental pollution.

Key concepts: Foreign direct investment, Environmental pollution, Pollution, Industrial pollution, Granger causality, Empirical research, Natural resource economics, Environmental science

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