Outward Foreign Direct Investment And Energy Intensity

In 2014,General Secretary said that Outward Foreign Direct Investment(OFDI)will reach US$1.25 trillion over the next 10 years,that is to say stock of OFDI will double.At the end of 2016,the OFDI stock in China reached 1.35 US$ trillion,an increase of US$ 25.593 billion from the end of the previous year.At the 19th National Congress of CPC and the 13th Chinese People's Political Consultative Conference(CPPCC),Chinese government have repeatedly stressed the importance of foreign investment and "One Belt and One Road".In 2017,The National Development and Reform Commission(NDRC)says that China's total energy consumption will be controlled within 5 billion tonnes of coal equivalent.In 2016,the total energy consumption in China reached 4.36 billion tons of standard coal,which is 8.41%higher over the previous year.Recently the National Energy Administration proposed that China's total energy consumption in 2018 should be controlled at about 4.55 billion tons of standard coal,and the energy consumption per unit of GDP should fall by more than 4%year-on-year.Control of energy consumption and improvement of energy efficiency is still an important issue.In the discussion of international cooperation and energy intensity,the existing literature mainly focuses on the impact of foreign investment(FDI)on the energy intensity of the host country.However,few people notice the impact of OFDI on their domestic energy intensity.Based on the research of 30 provinces in China from 2006 to 2015,this paper finds out that FDI plays a significant role in reducing the energy intensity of our country,and this role is established in the east,the middle and the west.The results of this paper fill in the research in this area.In order to distinguish the effect of OFDI on energy intensity between technology-intensive and non-technology-intensive companies,this paper constructs two variables,Inofdi_t and In ofdi_nt,which represent technology-intensive enterprise OFDI and non-technology-intensive enterprise OFDI and are measured through the data of 2714 A-share listed companies in Shanghai and Shenzhen stock markets.By introducing these two variables in the model,it is found that OFDI in technology-intensive companies has a more prominent effect on the reduction of energy intensity than non-technical enterprise OFDI;the robustness test from the three aspects of classification method,sample selection,and classification index indicates that this conclusion is relatively robust.In order to further explain the different effects of energy-intensive enterprise OFDI and non-resource-intensive enterprise OFDI on energy intensity,this paper constructs variables lnofdi?r and Inofdi_nr to represent resource-intensive enterprise OFDI and non-resource-intensive enterprise OFDI,respectively,and are measured based on the data of listed companies.After introducing these two variables in the model,it was found that non-resource-intensive OFDI has a significant contribution to reducing regional energy intensity,while the contribution of resource-intensive OFDI is not significant.Through empirical analysis,the different effects of different enterprises on energy intensity in OFDI are illustrated,which is also the contribution of this paper.