Research On The Impact Of Fdi On China’s Green Development

With environmental protection being strongly advocated around the world,China is facing increasingly serious environmental pollution problems,and how to achieve a "win-win" situation between China’s development and environmental protection has attracted widespread attention from all sectors of society.Foreign direct investment gives China new channels and opportunities to access advanced production technologies of foreign companies to help China’s development,but it may also affect the host country’s environment to a certain extent.How FDI affects the development of China’s green capacity is a matter of concern,and this impact depends to a large extent on the host country’s absorptive capacity.This paper investigates the impact mechanism of FDI on Green Total Factor Productivity from the perspective of heterogeneous absorptive capacity,and measures the Green Total Factor Productivity of 30 Chinese provinces(municipalities and autonomous regions)from2005 to 2020 and analyzes the current status of Green Total Factor Productivity in China by using the super-efficient SBM-GML index that considers non-expected output;on this basis,a panel model and a threshold model are established On the basis of this,a panel model and a threshold model are developed to explore the impact of FDI on China’s interprovincial Green Total Factor Productivity under the heterogeneity constraints of financial development level,industrial structure level,human capital level and other absorption perspectives.This study not only helps to understand the reasons for the divergent results of existing studies in this area,but also provides new insights for the high-quality development of China’s economy during the 14 th Five-Year Plan period.The study finds thatFirst,China’s Green Total Factor Productivity showed a "U" shaped trend from 2005 to2020,with 2014 as the turning point of the phase,declining and then rising,with a slight increase in the overall trend,and a spatially unbalanced feature of China’s Green Total Factor Productivity during the sample period,showing a growth in the east,a slow growth in the west,and a decline in the center.Secondly,the empirical study shows that the foreign direct investment(FDI)is a major contributor to the development of China’s economy.Second,the empirical study shows that FDI has a significant inhibitory effect on Green Total Factor Productivity growth in all Chinese provinces,especially in eastern China.Third,the effect of FDI on Green Total Factor Productivity is constrained by the regional heterogeneity of absorptive capacity,and FDI has a boosting effect on Green Total Factor Productivity only when the absorptive capacity reaches a certain level.there is a single threshold effect of FDI on Green Total Factor Productivity based on the level of financial development and a double threshold effect based on the level of human capital and industrial structure.This indicates that there are significant differences in the effects of FDI on China’s inter-provincial Green Total Factor Productivity under different financial development levels,human capital,industrial structure and other absorptive capacity variables.For the provinces whose absorptive capacity variables cross the threshold,FDI has a significant contribution to the improvement of Green Total Factor Productivity.Fourth,at present,the absorptive capacity of most provinces in China is still low,with only Beijing,Shanghai,and Tianjin crossing the threshold,and the absorptive capacity of most of the remaining provinces is still at a low level,which has become a bottleneck restricting FDI to promote the development of Green Total Factor Productivity.Based on the above findings,this paper puts forward relevant suggestions based on guiding FDI activities and improving green development capacity.This paper argues that in the new development period,the high-quality development of China’s economy should focus on the improvement of the absorption capacity of each region while improving the quality of foreign investment.