A Research On Relationship Of FDI, Environmental Regulation And Green Total Factor Productivity

The high-speed economic growth of China has been high-profile,but also criticized.Many scholars have always believed that China’s economic growth is achieved by sacrificing the environment and wasting resources.China’s high GDP growth rate is accompanied by a large number of resources are being abused,a wide range of environmental pollution.China’s green economy transition shouldn’t be delay.How to achieve the green growth of China’s economy,how to carry out green economy transition,the key is to improve the quality of economic growth,and as an indicator of economic growth quality green total factor productivity is essential.Based on the factors of energy input and environmental pollution,this paper uses the Malmquist-Luenberger productivity index based on the directional distance function to measure the green total factor productivity of all regions in China and analyzes them.It is found that there are regional differences in green total factor productivity in China,In order to further study the impact of foreign direct investment(FDI,the same below),environmental regulation and green total factor productivity,the impact of these mechanism.This paper presents three hypotheses: there is a relationship between FDI and green total factor productivity,and there is a relationship between FDI and environmental regulation,and there is an interaction between environmental regulation and green total factor productivity.On this basis,the simultaneous equations are established,and the influence mechanism between them is analyzed..This paper chooses the regional panel data of China from 2001 to 2014 to carry on the empirical analysis.The main conclusions are as follows:(1)There are regional differences in FDI and green total factor productivity.There is a significant correlation between them.The impact of FDI through the technological progress index on green total factor productivity is negative.While the lagged green total factor productivity is affected by the positive effects of economic growth on FDI.Green total factor productivity is also affected by the level of industrialization,capital,labor and energy inputs.The effect of industrialization on green total factor productivity is negative.There is a strong positive correlation between capital,labor,energy input and green total factor productivity.(2)The relationship between FDI and environmental regulation is significant,and the impact of FDI on environmental regulation is positive.The lagging environmental regulation will significantly promote the increase of FDI.In addition to environmental regulation,FDI will be affected by the per capita wage,the degree of marketization,the level of industrialization,and these effects are negative.(3)There is an interrelationship between environmental regulation and green total factor productivity.Environmental regulation affects green total factor productivity through technological progress indicators.And this effect is positive.Green total factor productivity is influenced by economic growth.But this effect takes time.The impact of Per capita GDP on environmental regulation is negative.In addition to being influenced by FDI and green total factor productivity,environmental regulation is also affected by the level of industrialization,per capita pollutant emissions and pollution control investment.The impact of the level of industrialization is negative.The impact of pollution control investment is positive.Combined with the conclusions of this paper,to promote the transformation of green economy to provide the following recommendations: to guide the flow of foreign capital,increase investment in pollution control,increase R&D investment and capital stock.