Research On Foreign Direct Investment And Green Total Factor Productivity

There is a miraculous economic growth in China that attracts worldwide attention.However,there are hidden worries behind the gradual increase of economic aggregate,such as resources starvation and environmental degradation.To enter the new era of economic development,China attaches great importance to the status of manufacturing in economic development and has put forward a series of plans and related policies such as “Made in China 2025”.However,manufacturing is also a major polluter and energy user.This industry is the key to reach the goal of carbon peaking and carbon neutrality.It is significant to boost the transformation of economic development mode,promoting its contribution to green growth.So,it is of great theoretical and practical importance to explore the relationship between manufacturing foreign direct investment(FDI)and the growth of green total factor productivity(GTFP)in the background of economic transformation.After analyzing the current situation of Chinese foreign direct investment and the mechanism of the impact of FDI on the growth of GTFP,this paper divided the manufacturing sector into different types.The non-radial and non-oriented SBM model is used to measure the GTFP of various industries.Based on the panel data of Chinese manufacturing industry from 2013 to 2020,this paper constructs a fixed effects model to empirically examine the impact and industry differences of manufacturing FDI on GTFP.The main conclusions of the study are as follows.Firstly,the green total factor productivity of Chinese manufacturing industry showed an overall growth trend during the period,with the characteristics of stages and industry heterogeneity.Secondly,overall,the inflow of manufacturing foreign direct investment has significantly inhibited the growth of its green total factor productivity.Thirdly,at the sub-sector level,the impact of manufacturing foreign direct investment and other variables on green total factor productivity is highly heterogeneous.Finally,based on the theoretical and empirical findings and the actual situation of Chinese manufacturing industry,the paper puts forward policy recommendations to promote the sustainable growth of its green total factor productivity.