Abstract:Based on the analysis of the traditional performance index of FDI, this paper builds the index of FDI technology efficiency (FTE) to describe the accurate effect of environment pollution and economic growth on the host country, and then uses Chinese provincial dataset from 2000 to 2010 to make the empirical study. The conclusions are that: the index of FTE shows an upward trend during the sample period in China, and the middle China performs the worst among the three regions; the FTE including the pollution is higher than the index without the pollution, and it suggests that the hypothesis of “pollution haven” doesn’t appear in China; there exists a significant difference among different regions in FTE, but the gap is diminishing based on the coefficient of Thiele.