Research On The Impact Of Environmental Regulation And Foreign Direct Investment On Green Total Factor Productivity

Since the reform and opening up,China has introduced various preferential policies for the introduction of foreign capital,making China the second largest inflow of foreign capital in the world,and capital effects and technology spillover effects have promoted China’s economy to achieve leapfrog growth.On the other hand,the continuous expansion of the size of multinational companies has accelerated the consumption of resources in the region,and especially the pollution-intensive enterprises have greatly weakened the regional environmental carrying capacity.In recent years,the government has begun to realize the importance of environmental protection,changed the performance model of the GDP-only theory,and focused on the quality of economic development in order to achieve a green economy transition.The design intensity of environmental regulations is determined by the government.At this time,whether to focus on the scale or quality of foreign investment,whether this strategic behavior will affect the growth of green total factor productivity is particularly important.Therefore,the three are put in the same framework to analyze whether environmental regulation can further affect green total factor productivity by affecting foreign direct investment,and whether changes in the scale of foreign direct investment affect the relationship between environmental regulation and green total factor productivity.It is worth exploring in depth.This article first sorts out the relevant literature,and draws on the theory of cost effects,innovation compensation effects,technology spillover effects,environmental effects,international production eclecticism,and the "pollution refuge" hypothesis to influence the green elements of environmental regulation and foreign direct investment The mechanism of productivity was analyzed.Secondly,this paper uses location entropy to measure the strength of each city’s environmental regulations,and uses the Malmquist-Luenberger index based on the SBM directional distance function to measure the green total factor productivity and its decomposition terms of local cities.The status quo of the development of direct investment and green total factor productivity.It is found that the intensity of environmental regulation,green total factor productivity and its decomposition all show obvious urban differences,and the differences between regions and cities of foreign direct investment are particularly prominent.Finally,this paper uses the data samples of 209 prefecture-level cities in China from 2004 to 2016,and uses the dynamic spatial panel Dubin model and mediation effect model to conduct an empirical study on the impact of China’s environmental regulations and foreign direct investment on green total factor productivity.The results show that:(1)In the time dimension,there is a time-dependent characteristic of the green total factor productivity in China’s prefecture-level cities;in the space dimension,there is a positive spatial spillover effect.(2)The impact of environmental regulations on green total factor productivity has an inverted "U" curve relationship,and foreign direct investment has a significant negative impact on green total factor productivity.(3)The impact of environmental regulations on green total factor productivity has direct and indirect effects.First,there is a significant inverted “U” relationship between environmental regulation and green total factor productivity.This is the direct impact of environmental regulation on green total factor productivity.Second,environmental regulation can affect foreign direct investment and thus affect green total factor productivity.Factor productivity,that is,foreign direct investment is the mediating variable of environmental regulation affecting green total factor productivity,which is the indirect impact of environmental regulation on green total factor productivity.Finally,based on the results of empirical research,the paper summarizes the full text and puts forward relevant policy recommendations from three aspects: implementing different environmental regulation policies,setting green barriers,optimizing industrial structure,promoting green technology progress,and improving green technology efficiency.