China's Outward Direct Investment,System Quality And Green Total Factor Productivity Of The "Belt And Road" Countries

Under the background of economic globalization,whether China's foreign direct investment can promote the improvement of green total factor productivity in countries along the “Belt and Road” has attracted much attention.It is worth noting that whether this international technology spillover can be successfully achieved is affected by the exogenous environment-system quality,and the impact on the green total factor productivity of the countries along the route is significantly heterogeneous.In view of the “natural” differences in the system completeness of the “Belt and Road” countries,how to circumvent the institutional risks of countries along the route for cross-border investment and the effective use of international technology spillovers to enhance the national total factor productivity is an important issue for China and countries along the route.This paper mainly studies whether China's foreign direct investment can help improve the environmental total factor productivity of countries along the Belt and Road.First,the ICRG database,the World Bank WDI database,the traditional foundation database and the Wind database were matched to obtain the balance panel data of 46 countries along the “Belt and Road” in 2003-2016.Secondly,Malmquistwhich can be included in undesired outputs was adopted.The Luenberger index calculates the green total factor productivity of countries along the line;again,constructs the “One Belt,One Road” national system quality evaluation system from the three dimensions of political system quality,economic system quality and legal system quality,and uses the entropy method to the overall system of different countries.The quality is measured.Then,the GMM panel model and the PVAR model which can effectively solve the endogenous problems between variables are used to test the direct effect and interaction effect of China's foreign direct investment and system quality on the green total factor productivity of the countries along the line.Finally,the dynamic threshold panel is adopted.The model examines the non-linear relationship between China's foreign direct investment and the “ Belt and Road” national green total factor productivity in different institutional quality of host countries.The results show that China's outward direct investment and the quality of political,economic and legal systems,including the overall system quality,have significantly promoted the promotion of green total factor productivity in the countries along the line.The threshold effect further verifies that the “green innovation effect” of China's outward direct investment will increase with the improvement of the host country's institutional quality.Accordingly,all countries along the line could actively respond to the “Green One Belt and One Road” development initiative,strive to improve the quality of their own systems,and push China's “One Belt and One Road” green low carbon development with China.