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By using Chinese provincial panel data from 1998 to 2013, the study, based on the empirical analysis about the influence of environmental regulation on FDI, found that: the higher the degree of local government fiscal autonomy, the greater the incentive of the competition of FDI; strict environmental regulation has a bad effect on FDI inflows; in order to attract more FDI, local government especially in the central and western regions have the tendency to attract FDI by reducing the environmental regulation.

Environmental Regulation Effect on FDI Research - based on the Perspective of Local Government Competition