Abstract: From the perspective of local government competition, this paper uses spatial econometric model and exploratory spatial data analysis methods to empirically study the impacts of strategic competition for attracting FDI on resource and environmental performance(REP).The estimated results show the impacts of FDI on REP depends not only on its environmental spillover effects both in inter-region and intra-region, but also on fiscal expenditure in local and neighbouring jurisdictions. Among these, the impacts of local expenditure competition for attracting FDI on REP has a threshold effect, while the strategic expenditure of neighbouring jurisdictions significantly decreases that and shows a remarkable structural preference. The big expenditure in economic construction and limited input in public service has become competitively imitated polices among jurisdictions. The results of ESDA methods further indicates that there are remarkable differences in the impacts of strategic competition for attracting FDI on ERP among different accumulation area The expenditure of neighbouring jurisdictions significantly decreases FDI's REP in high accumulation area, but it doesn't occur in low accumulation area.

Key words: Foreign Direct Investment, Resource and Environmental Performance, Local Government Competition