The Impact Of Capital Account Opening On Green Total Factor Productivity

For a long time,countries around the world have been overly concerned about and pursued the increase of their own GDP,investing heavily in traditional factors of production such as capital,labor and energy to maintain rapid economic growth,while at the same time ignoring the negative effects of economic growth such as environmental pollution and energy depletion.When the planet is experiencing serious environmental problems such as global warming and energy problems such as oil shortages,countries are beginning to focus on changing their economic growth patterns and pursuing sustainable and green economic development through the use of green and clean technologies and more efficient energy use.Green Total Factor Productivity,which incorporates environmental and energy factors into the measurement system,is an effective indicator of a country’s level of harmonious economic and environmental development.The opening up of the capital account will bring about an increase in the efficiency of the allocation of capital as a factor of production and positive technological spillover effects,and the opening up of the capital account is a process that a country must go through to integrate into economic globalization and develop its external economy.It is of great theoretical and practical significance to explore how the increased openness of a country’s capital account can contribute to the improvement of green total factor productivity,thereby realizing the transformation and upgrading to a green economy.After reviewing the literature on the impact of capital account opening on economic growth,total factor productivity and GTFP,the definition and measurement criteria of capital account opening and green total factor productivity are clarified,and relevant theories such as international capital flows and green growth are sorted out and elaborated to provide economic theoretical support for the next analysis of the mechanism of the effect of capital account opening on GTFP from the theoretical level.The SBM-DDF model is used to measure the green total factor productivity of the sample countries,and the GML index is decomposed into green technological progress and green efficiency progress indices to analyze the spatial and temporal evolution trends and sources of GTFP.The empirical analysis also takes into account the "joint effect" of various factors affecting GTFP,and divides the sample into developed and non-developed countries for the empirical analysis,considering whether there are regional differences in the impact of capital account liberalization on GTFP.The results of the study show that:(1)GTFP shows an overall upward trend year by year during the sample period,and the source of growth is mainly the advancement of green technology,and the GTFP in developed countries is higher than that in nondeveloped countries.(2)From the results of the benchmark regression of the sample,the degree of capital account opening is significantly and positively correlated with green total factor productivity,and capital account opening will achieve green total factor productivity growth by promoting the progress of green technology and green efficiency,and the change of green technology progress has a greater driving force on green total factor productivity than the change of green efficiency progress.(3)Foreign investment and financial development have a positive moderating effect on the relationship between capital account opening and green total factor productivity.(4)The role of capital account opening on GTFP differs between developed and nondeveloped countries due to the different economic bases of different countries.The innovation points compared with other literature are:(1)Innovation of research perspective: the existing literature has mostly studied the impact of capital account opening on economic development,total factor productivity and numerous influencing factors of green total factor productivity,less attention and research on the relationship between capital account opening and green total factor productivity,this paper takes capital account opening as the entry point and explores the effect of capital account opening on green total factor productivity and its mechanism of action through theoretical analysis and empirical test.This paper takes capital account liberalization as a starting point to explore the effect of capital account liberalization on green total factor productivity and its mechanism of action through theoretical analysis and empirical tests.(2)The current measurement of green total factor productivity data only focuses on a certain industry,economic belt and domestic province level.This paper uses the SBM-DDF model,which is currently the most cutting-edge model in academia,combined with the GML dynamic index method to measure its green total factor productivity at the national level and apply it to the subsequent empirical analysis.Finally,based on the above analysis,suggestions are made in terms of how to promote the opening of China’s capital account in a gradual and orderly manner and how to promote the development of green industries and green finance in the context of financial opening and development.