Citation

Berna Kirkulak, Bin Qiu, Wei Yin, (2011) "The impact of FDI on air quality:
evidence from China", Journal of Chinese Economic and Foreign Trade Studies,
Vol. 4 Issue: 2, pp.81-98,

Introduction
Today, multinational corporations (MNEs) are spreading their horizons around the
world in an era where globalization is taking place and always been promoted.
MNE is always looking for countries with stable policies and good politics to
invest capital abroad. Foreign direct investment (FDI) is the first MNE channel to
invest in developing countries and help them advance in technology. In 1992, with
positive signals from the Chinese government and showing a willingness to
integrate into the world economy, FDI inflows increased sharply from $ 3.49
billion in 1990 to $ 27.5 billion in 1993. Although FDI inflows into China help
boost China's economy. But the question is whether the impact of FDI on the
quality of life of Chinese people is not - especially air quality.
Many studies have provided evidence that FDI pollutes the air. But there are also
documents showing that FDI does not have a negative impact on air quality but
also reduces air pollution.
I chose this article because I think it will give you the answer to the question,
"Does FDI bring enormous economic growth with large investments in the past
few years? - especially the air. " According to the article, I have a contradiction on
the impact of FDI, we can see more clearly the good and the bad side of FDI in
large countries.

Aims and research method

The author's paper aims to explain and understand the impact of FDI on air quality.
This research aims to help people understand the relationship between FDI
attraction and pollution - because of the rapid development of this industry or the
overwhelming population of the country. air pollution. It also gives readers an
overview of how FDI can be received from abroad with a stable living
environment. this text presents the most important sample of 286 cities throughout
China from 2001 to 2007. thinking about the distribution of FDI across China, the
sample is broken up into three areas. The distribution of FDI distribution patterns
allows China to take a look at however the results of FDI dissent on-air great in the
East, significant and West areas
To find out the answer to his topic, the author used data from 286 cities in China
from 2001 to 2007. All data are taken from statistical books by the Statistical
Office China announced. To solve dependent variables and independent variables,
Berna Kirkuk used the ordinary least square (OLS) and panel data analyzes (fixed
effects and random effects) and generalized least square. Because the data are both
cross-sectional and time series, there is a serial correlation of the term error, the
author used the Durbin-Watson test to detect and correct errors. Finally, the author
uses GLS with AR (1) to correct the serial correlation.

The scope
Some of the main items mentioned in the article are: First, use OLS to analyze
negative relationships and better understand the relationship between air pollution
and FDI. The use of GLS is to show the relationship between SO2 emissions from
industrial activities in the greenhouse effect and FDI. Finally, the analysis does not
only show the effects of foreign direct investment but also shows an interest in the
link between China's involvement in the WTO and its implications for exposure.
FDI and air pollution.

The usefulness
The results of this study may be of benefit to Chinese administrators. Help them to
get an overview of the impact of FDI on China, from which a more general view of
the economy as well as the inadequacies of attracting FDI inflows. As a result,
everyone feels the airflow when FDI flowing into China does not always reduce air
quality, but vice versa. As a result, managers may consider allocating population
across China, from the west, east and central. This is partly due to the fact that
China is in the process of industrialization and modernization. Therefore, they need
cheap input materials to promote the development process, so they use fossil fuels
such as coal to produce electricity or petrol to produce consumer goods. They have
exchanged quality of life for a strong economy. Thanks to this paper, Chinese
managers and planners can plan for a long-term development, economic and
quality of life.

Limitation

With this article, the author also has some imperfections. First, the fact that only
two variables are used in the study are independent variables and dependent
variables; That this study does not include the impact of FDI on air volume and we
only see one aspect of the problem. Although two methods have been applied at
the same time, there are minor bugs despite the Durbin-Watson test to find and fix
bugs.
This article is from 2011 to 2018 and current research is for reference only and
should be updated as well as additional shortcomings of the article to continue to
be used.

Conclusion

Over the years, many have questioned whether air quality in China has increased
as the Chinese economy is growing. From what research, the author found in the
East there are many gifted leaders living in the Central or West. Yes, so FDI is
mainly imported into China and invested in the east coast. The analysis results
show a complete deviation from people's thoughts. Economic growth and air
pollution have a negative relationship. And they found out that they were more
populous, the lower the quality of the air. The results of this study are very
beneficial for managers. They know what their country needs and should plan how
the country can develop sustainably and have a good living environment - even
though China is in the process of industrialization and pollution is inevitable.