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

Since the reform and opening up,the extensive economic development model has brought rapid growth,but also brought endless pressure on regional environmental protection.Transforming the economic development model to achieve green innovation and development has become an inevitable choice for the great rejuvenation of the Chinese nation.Practical experience shows that foreign direct investment as an external driving force affects the improvement of total factor productivity,but under the premise of current sustainable development,the path and extent of green total factor productivity need to be discussed.Therefore,this paper focuses on three aspects: one is whether foreign direct investment has an impact on green total factor productivity,that is,whether changes in foreign direct investment will cause changes in green total factor productivity;the second is whether foreign direct investment has an impact on green total factor productivity The third is the spatial effect of the impact of foreign direct investment on green total factor productivity,that is,whether the changes in green total factor productivity caused by foreign direct investment are related to each other.o overflow.This paper is a problem-oriented academic research,following the applied economics paradigm of "theoretical mechanism-empirical testing-policy recommendations",combined with relevant domestic and foreign theories and literature results,to further explore the impact of foreign direct investment on green total factor productivity.The first is to systematically review the classical theoretical premise of foreign direct investment and green total factor productivity,comprehensively summarize the literature achievements of domestic and foreign scholars on foreign direct investment and green total factor productivity,and analyze the relationship between time evolution and green total factor productivity from the perspective of historical evolution.Trend features in spatial evolution.Then it is the mechanism study of foreign direct investment on green total factor productivity.According to the classical theories and literature results,the catfish effect(weak competition mechanism)and substitution effect(strong competition mechanism)contained in the market competition effect are sorted out,and the technology contagion effect contains Demonstration effect and imitation effect,and the action path of spatial agglomeration effect.At the same time,an evolutionary game model of the market competition effect and technological contagion effect of foreign-invested enterprises and local enterprises is established,and the impact of foreign direct investment on green total factor productivity is further explored through three parts:probability payment matrix,evolutionary game analysis and system stability analysis.mode and mechanism of action.Finally,the empirical research on green total factor productivity by foreign direct investment,according to the technological innovation path shown by market competition effect and technology contagion effect,examines the intermediary role of technological innovation in the relationship between foreign direct investment and green total factor productivity,and according to the mechanism of spatial agglomeration effect,using the spatial econometric model to analyze the manifestation of technology spillovers in green total factor productivity.In addition,considering the endogenous problems in the relationship between foreign direct investment and green total factor productivity,the empirical study further regards the establishment of a free trade zone as an exogenous shock to explore the impact of foreign direct investment on green total factor productivity.Based on the above study the following conclusions can be drawn:Firstly,the analysis of the theoretical mechanism shows that the impact mechanism of FDI on green TFP is a combination of effects,and although local firms show different strategic responses based on different effect mechanisms,all of them will contribute to the improvement of green TFP in the end result.In the market competition effect,local firms are subject to environmental regulations by the host country(regional)government and the green technology squeeze by foreign firms,and they lose market share and invest in R&D to improve green TFP.In the technology contagion effect,local firms face green technology standards and norms set by foreign firms and learn to imitate them through staff mobility and management training to increase green TFP.In addition,in the spatial agglomeration effect,green technology spillover from foreign firms changes with distance,and local firms in close(neighbouring)areas increase green TFP more quickly.Secondly,the empirical study proves that,firstly,FDI can promote green TFP,and the market competition effect plays an incomplete intermediary role in this regard,as the introduction of FDI expands the market competition effect,forcing enterprises to increase their R&D investment and thus promoting green TFP.Secondly,the ability of technological innovation plays an incomplete mediating role in the process of FDI affecting green TFP.The new production methods brought about by advanced technology replace the traditional production model,and learning from the green and clean technologies of developed countries makes it possible to accelerate the greening of production and reduce the emission and production of pollutants at source,in order to promote the green TFP of cities.Finally,a global and local spatial autocorrelation test reveals that foreign direct investment and green total factor productivity both show a significant positive spatial correlation.Within the region along with the increase of FDI,the green total factor productivity of cities showed an increasing trend,and the coefficient of FDI was also significantly positive conditional on the spatial weight matrix,i.e.the increase of FDI had a significant contribution to the improvement of green total factor productivity in the surrounding cities.Thirdly,the policy shocks are explored to show that the establishment of a free trade zone increases the green total factor productivity of a city,and the mechanism of its effect is mainly reflected in the increase of the city’s innovation level,the alleviation of the city’s capital mismatch and the promotion of the city’s industrial agglomeration degree.Since inland cities do not have market advantages in terms of transport costs and factor mobility,the effect of setting up a free trade zone in an inland city on green total factor productivity is more pronounced,while the establishment of a free trade zone in a municipality directly under the Central Government significantly increases green total factor productivity in the city where it is located than when the free trade zone is set up in a non-municipality directly under the Central Government.The role of resource allocation efficiency as a mechanism between free trade zones and green total factor productivity implies that the key point for the promotion of green total factor productivity through the establishment of free trade zones is still to rely on the decisive role of the market,i.e.using market forces to optimise resource allocation efficiency and thus enhance green total factor productivity.After that,the policy recommendations put forward the rational design of a long-term mechanism for foreign direct investment to drive the growth of green total factor productivity,as well as solutions to promote the sustainable growth of green total factor productivity,with a view to providing environmental protection,investment attraction and green development policies for all levels of departments.Certain reference.The marginal innovation of this paper is: firstly,it explores and constructs a theoretical analysis framework for the impact of foreign direct investment on green total factor productivity;secondly,it clarifies the causal relationship between foreign direct investment and green total factor productivity from the whole to the part;thirdly To supplement the correlation analysis of the spatial effect of foreign direct investment.