Author(s)

RuiBo Liu, HaiYong Lu

Corresponding Author

RuiBo Liu

ABSTRACT

Using provincial panel date of china,this paper examines the effects of the overall FDI and different sources of FDI on the industrial structure from the perspective of heterogeneity, and introduces the interaction between FDI and environmental regulation to explore the indirect impact of environmental regulation through FDI on industrial structure.the paper finds: FDI has an inhibitory effect on the advancement of industrial structure in China at present, but the interaction between environmental regulation and FDI contributes to the advancement of industrial structure; Different sources of FDI have varying degrees of negative effects on the industrial structure in China, the negative effect of FDI from Japan,South Korea and Singapore is the biggest, FDI from the United States, Britain, France and Germany second, FDI from Hong Kong, Macao and Taiwan is the smallest; Environmental regulation has been able to positively regulate the impact of FDI on Industrial Structure.Therefore, the local government should pay attention to the quality of FDI from different sources when attracting investment, and selectively and specifically introduce foreign investment. At the same time, the local government should give full play to the role of environmental regulation policy tools, and effectively regulate and guide FDI, which is helpful for the region to upgrade industrial structure

KEYWORDS

Advancement of Industrial Structure; Different Sources of FDI; Environmental Regulation