The Impact Of Heterogeneous FDI On China's Green Total Factor Productivity

Thanks to the economic reform and opening-up policy,China's economy has achieved great-leap-forward development and has become the world's second largest economy.However,the rapid economic development has brought problems such as resource depletion and environmental deterioration to China.In order to solve this dilemma and realize sustainable development,China has put forward the concept of green development,which requires high-quality economic growth under the premise of environmental protection.As an important part of China's economic development,FDI will undoubtedly affect the achievement of China's economic green transformation goal.How to use FDI to drive the development of green economy has become an unavoidable topic.For this reason,some scholars began to measure the growth performance of green economy by using Green Total Factor Productivity(GTFP),and further studied the relationship betweenFDI and China's GTFP growth,in order to explore the impact of FDI on China's green economy development.However,in this part of the study,FDI is mostly regarded as homogeneous capital,ignoring the differential impact of heterogeneous FDI on GTFP,which makes the conclusions less pertinent.In view of this,this paper divides FDI into two groups:joint-venture FDI and sole-proprietorship FDI,export-oriented FDI and market-oriented FDI from the perspectives of investment mode difference and investment motivation difference,and analyzes the impact of heterogeneous FDI on China's GTFP,hoping to judge which investment mode is conducive to the growth of China's GTFP and whether it is necessary to adjust the flow direction of market-oriented FDI and export-oriented FDI.In order to study this problem systematically,this paper makes theoretical analysis,current situation analysis and empirical analysis.The theoretical analysis part constructs the theoretical framework of FDI's influence on GTFP.After defining the concepts of FDI and GTFP,the article systematically analyzes the impact mechanism of FDI on GTFP from four aspects:capital effect,technology transfer effect,technology spillover effect and environmental effect.Based on this mechanism,it further analyzes the differences in the impact of FDI of different investment modes and different investment motives on GTFP.Theoretical analysis shows that the impact of joint-venture FDI and sole-proprietorship FDI on GTFP is uncertain in size and direction,and the promotion effect of market-oriented FDI on GTFP should be greater than that of export-oriented FDI.In the current situation analysis part,this paper uses descriptive statistical analysis method to analyze the overall situation,investment mode,industrial distribution and source distribution of FDI in China,so as to grasp the current situation,trend and characteristics of FDI in China.Then use non-radial and non-angular SBM directional distance function and DEA-GML index to calculate the provincial GTFP and its decomposition items.The results show that the overall GTFP in China shows a downward trend during the sample period,and the decline is mainly caused by the decline of technical efficiency.In the part of empirical analysis,this paper firstly uses systematic GMM method to carry out benchmark regression on China's provincial dynamic panel data from 2000 to 2015,and judges the impact of FDI on China's GTFP from the overall perspective.Then it groups FDI based on investment mode and investment motivation,and empirically tests the differences in the impact of Heterogeneous FDI on China's GTFP.The conclusions are as follows:1)Generally speaking,FDI flowing into China significantly promotes the growth of GTFP.2)Joint-venture FDI has significantly improved China's GTFP,but the promotion effect of sole-proprietorship FDI is not obvious.3)Export-oriented FDI has significantly improved China's GTFP,while market-oriented FDI has a positive impact on GTFP but the effect is not significant.In view of the above conclusions,the article further combines the theory and China's actual development situation to carry on the explanation.Based on the.results of empirical tests,this paper puts forward three suggestions on how to use FDI to drive the growth of China's GTFP:first,to strengthen Sino-foreign cooperation and reasonably increase the proportion of Sino-foreign joint-venture FDI;The second is to improve the technology spillovers and vertical technology spillovers level of export-oriented FDI,to ensure that export-oriented FDI can continuously promote the growth of China's GTFP.The third is to control the flow direction of market-oriented FDI and guide market-oriented FDI to medium and high-end industries and low-pollution industries,so as to significantly enhance spillover effects and effectively promote China's GTFP.