Heterogeneous Human Capital and Environment Influence Mechanism of FDI: An Empirical Research Based on the Panel Data Derived from Provinces of China

In this paper, the human capital is divided into two kinds of types: heterogeneous human capital and coessential human capital, and the environmental impact mechanism of FDI in different human capital is studied by using the panel data from 1999 to 2012. The research shows that, in general, the FDI investment will not produce pollution effect on the environment; but in fact, it is the heterogeneous human capital in the human capital, which leads to the emission reduction effect of FDI. In contrast, FDI investment in high homogeneous human capital will lead to environmental degradation.