Research On The Impact Of FDI On Green Total Factor Productivity In The Yangtze River Delta

As the world experiences technological innovation and industrial transformation,new industries are emerging gradually,and new industrial development paths are constantly being introduced.Since the traditional development model of high-consumption industries is incompatible with the existing resource and environmental conditions,a high-quality development of the economy requires new ideas as well as new models.The pursuit of sustainable economic development is therefore a sensible path in the new global context.Meanwhile,the Yangtze River Delta,which is the frontier of China’s opening up,a region of economic demonstration and a gathering point for population resources,seeks new and green development.Thus,it is imperative to coordinate the relationship between economic development,resource allocation,and environmental optimization,and to use high-level foreign investment to promote green economic efficiency,that is,to further increase the green total factor productivity and to improve the quality of foreign investment in the Yangtze River Delta.Considering the heterogeneous characteristics of the quality and quantity of FDI,the quantity and quality of FDI and the green total factor productivity are defined,and the mechanism path of the specific impact of foreign capital on GTFP is analyzed with reviewing existing research.And as theoretical support,the study constructs the static and dynamic Dubin models of the spatial panel to empirically test the impact of foreign investment quantity and quality on green total factor productivity using panel data from41 prefecture-level cities located in the Yangtze River Delta from 2003 to 2018.Furthermore,by utilizing the GTFP level as a classification basis,the regional heterogeneity analysis of the Yangtze River Delta region is carried out.The research found that,(1)During the sample period,the total green total factor productivity in the Yangtze River Delta shows an intertemporal growth trend,and green technological progress contributs the most.Besides,the green total factor productivity indices of Shanghai,Jiangsu and Zhejiang all increased positively.(2)(2)In the full-sample empirical study,the quality of FDI in the Yangtze River Delta not only promotes the growth of green total factor productivity,but also in nearby regions and at an economically developed level,with clear spillover effects.In contrast,the quantity of FDI shows a negative inhibitory effect.(3)From the perspective of the long-term and short-term effects of the dynamic spatial Dubin model,the long-term effect performes better on the effect of SFDI and QFDI on the green total factor productivity.(4)From the empirical results of the sub-samples of different regions,regions with different levels of green total factor productivity have different performances.Specifically,in high GTFP levels,the quality and quantity of FDI are basically better.Finally,with the empirical results,relevant suggestions are put forward,that is,in the process of introducing foreign capital in the Yangtze River Delta,it is necessary to deal with them by categories,increase the share of high-quality FDI,build appropriate environmental regulations to create a good domestic and foreign investment environment,and promote the positive coordinated development of FDI and green total factor productivity.