Research on the Impact of Foreign Direct Investment Quality on Green Total Factor Productivity: Evidence from China
Cem Işık 4,5,6,7
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School of Economics, Fujian Normal University, Fuzhou 350108, China
Reading College, Nanjing University of Information Engineering, Nanjing, 210044, China
Business School, University of Queensland, Brisbane, 4072, Australia
Department of Economics, Faculty of Economics and Administrative Sciences Anadolu University, Tepebaşı, Eskişehir, Turkey
Adnan Kassar School of Business, Lebanese American University, Byblos, Lebanon
Azerbaijan State University of Economics (UNEC) Clinic of Economics, Baku, Azerbaijan
Western Caspian University, Economic Research Center (WCERC), Baku, Azerbaijan
Irvine Valley College, 92612, CA, USA
Submission date: 2023-07-28
Final revision date: 2023-12-15
Acceptance date: 2024-01-08
Online publication date: 2024-04-30
Publication date: 2024-06-07
Corresponding author
Jiale Yan   

Irvine Valley College, United States
Pol. J. Environ. Stud. 2024;33(4):4573-4584
Green total factor productivity (GTFP) is an important indicator to measure the green development of the economy. In the context of increasing investment promotion, improving GTFP is an important means of promoting sustainable development. It is also an important way to promote low-carbon development. Based on the panel data of 29 provinces and cities in China (excluding Xinjiang, Tibet, Hong Kong, Macao and Taiwan) from 2011 to 2020, this paper adopts the entropy method to construct a comprehensive index of the quality of foreign direct investment (QFDI) and employs the systematic generalized method of moments (GMM) to estimate the impact of QFDI on GTFP. Meanwhile, this paper also uses the threshold model for further testing. The results show that QFDI has a significant positive effect on China’s GTFP. In terms of dimensions, foreign capital with high technology spillover ability, high management level and high profitability has a significant promoting effect on GTFP. However, the positive effect of foreign capital scale is weak. And foreign capital export capacity has no significant effect on GTFP. The impact of QFDI on GTFP has a single threshold effect based on human capital and R&D investment. From a regional perspective, QFDI has a greater role in promoting GTFP in coastal areas than in inland areas. This paper provides important suggestions for policymakers to improve foreign investment policies and promote green development.
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