Analysis of the FDI Effect on Energy Consumption Intensity in Jiangsu Province

This paper decomposes Jiangsu energy consumption intensity change from 1998-2008. And the energy consumption intensity is decomposed into FDI scale effect, FDI structure effect and FDI technology effect, using LMDI model. Decomposition and analysis results show that FDI scale effect reduces the energy consumption intensity. FDI structure and technology effect fluctuates and do not promote the reduction of energy consumption intensity, on the whole. Therefore, to reduce the energy consumption intensity of Jiangsu Province, we suggest that while expanding FDI scale, we should adopt unified energy-saving and emission-reducing requirements to FDI enterprises and domestic ones. Meanwhile, we should increase the foreign investment proportion in the technology-intensive industries and encourage FDI enterprises to use and exchange advanced energy-saving technologies. Moreover, we should adjust the distribution industry structure of FDI to optimize the industrial structure adjustment.