Research On The Effect Of FDI On Regional Green Total Factor Productivity In China

Since the reform and opening up,China's economy has been growing steadily and rapidly,but the mode of economic growth is still extensive.With the background of increasingly severe resource and environment constraints,green development has become the national consensus.Green total factor productivity,as an improved total factor productivity after deducting environmental costs,reflects the quality of economic development and comprehensive benefits,and has become an important research topic in the field of green development.Foreign direct investment(FDI)has been a key driver of China's economic growth since the reform and opening up.However,its environmental effects have attracted much attention and controversy.Therefore,during the important transition period of China's economic development,the analysis and research of the impact of FDI on the green total factor productivity of China and the region is of great practical significance to the formulation of national policies and regional policies centered on the improvement of green total factor productivity.Firstly,this paper studies the impact mechanism of FDI on green total factor productivity,and then calculates and analyses green total factor productivity by using SBM directional distance function and Luenberger productivity index.This paper then summarizes and analyzes the use of FDI in China from four aspects,including the general situation,regional distribution,investment structure and investment mode.At last,the panel data of 30 provinces and cities in China from 2001 to 2015 are used to empirically analyze the relationship between FDI and green total factor productivity and compare the regional differences.In addition,based on the results of linear regression,this paper also selects three indicators of human capital,R&D investment,and environmental regulation as threshold variables,and uses a panel threshold model to test whether FDI has a threshold effect on green total factor productivity,and further explores the non-linear influence of FDI on green total factor productivity.The main conclusions of this study include:(1)the average annual growth rate of China's green total factor productivity from 2001 to 2015 is 4.02%,and technological progress is the leading factor in driving green total factor productivity growth.In relation to the regional distribution,the green total factor productivity in China shows a step down trend from the east to the west;(2)FDI has been showing a growing trend,but regional differentiation is distinct,the eastern area is the most concentrated area to attract FDI,while the scale of FDI attracted by the middle and western areas is relatively small;(3)the overall national regression results support the "pollution heaven hypothesis",and FDI has a significant negative impact on the green total factor productivity in China.But for different regions,the influence of FDI is not the same.FDI in the middle area has a positive impact on the green total factor productivity,while FDI in the eastern and western areas inhibits the growth of green total factor productivity,and the inhibitory effect of the western region is more obvious.(4)under the three thresholds of human capital,R&D investment,and environmental regulation,there is a threshold characteristic between FDI and green total factor productivity.If and only if the threshold is within a reasonable interval,FDI can promote green total factor productivity.Finally,in order to provide useful inspiration for the green economic growth in China,several suggestions are put forward,including improving the introduction mechanism of FDI,promoting the level of human capital,encouraging technological innovation and the rational design of environmental regulation.