Research On The Impact Of Two-way FDI On Green Transition Of China’s Manufacturing Industry

As the largest manufacturing country in the world,China’s manufacturing sector accounted for nearly 30% of the world’s total in 2020.However,with the increase of economic size,manufacturing industry consumes a lot of energy and resources in the process of development,and the ecological environment is facing severe challenges.Although "Made in China 2025" clearly proposed to build an efficient,clean,low-carbon,circular green manufacturing system,the realization of industrial green transformation is the general trend.In addition,two-way FDI as an important carrier of international factor flow,green environmental protection technology,resources and management experience in the international market is one of the driving forces for China’s manufacturing industry to achieve green transformation.Therefore,in the context of the new development pattern of "double circulation at home and abroad",this paper explores the impact of two-way FDI on the green transformation of China’s manufacturing industry and provides suggestions for the realization of green transformation of China’s manufacturing industry on the basis of enriching relevant researches.Firstly,according to the development status of Green transformation in China’s manufacturing industry,the evaluation index system of green transformation is constructed from input capacity and output level,and the level of green transformation in China’s manufacturing industry from 2009 to 2019 is measured by the projection pursuit model.The results of the optimal projection value show that: The overall level of green transformation in China’s manufacturing industry shows an upward trend of fluctuation,and there is significant industry heterogeneity.Technology-intensive industries have the highest level of green transformation,followed by labor-intensive and capital-intensive industries.Secondly,theoretical analysis of the effect of two-way FDI on manufacturing green transformation mechanism.FDI influences the green transformation of China’s manufacturing industry through capital effect,technology spillover effect and environmental effect,while OFDI influences the green transformation of China’s manufacturing industry through resource allocation,reverse technology spillover effect and environmental effect.FDI and OFDI have mutually reinforcing interaction,which further promotes the play of various effects.Thus affecting the green transformation of China’s manufacturing industry.In addition,based on the general analysis of the disequilibrium model,relevant hypotheses are proposed,assuming that there is an interactive effect between FDI and OFDI.It is assumed that two-way FDI interactive development can promote the green transformation of China’s manufacturing industry.It is assumed that there is significant industry heterogeneity in the impact of two-way FDI interaction on green transformation of China’s manufacturing industry.Then,before testing the impact of two-way FDI on the green transformation of China’s manufacturing industry,the interaction effect of two-way FDI is tested,and the coupling degree model is established to measure the interactive development level of two-way FDI.The results show that there is an interactive effect between two-way FDI;From 2009 to2019,the interactive development level of two-way FDI in China’s manufacturing industry showed a trend of fluctuation and increase,and there was significant industry heterogeneity.After two-way interactive development level as the core variable,FDI to China’s green manufacturing level of transformation to be explained variable,add the control variables such as level of environmental regulation,technology,construction of China’s manufacturing industry in 2009-2019 panel data model,from the sample and industry heterogeneity two-way two dimensions research the influence of FDI on China’s manufacturing green transformation.Differential GMM analysis results show that two-way FDI interactive development has significantly promoted the level of green transformation in China’s manufacturing industry.Green transformation lags behind,technological innovation,human capital and environmental regulation can promote the development of green transformation in China’s manufacturing industry.The results of industry heterogeneity analysis show that there is significant industry heterogeneity in the impact of two-way FDI on the green transformation of China’s manufacturing industry,which has a positive promoting effect on the green transformation of labor-intensive and technology-intensive industries,while has a negative impact on the capital-intensive industries.Finally,the corresponding countermeasures and suggestions are put forward according to the empirical conclusions.On the one hand,the government should optimize the quality of foreign direct investment,raise the threshold for foreign investment to a certain extent,encourage and attract foreign high-end,intelligent manufacturing,and green manufacturing fields to enter the Chinese market;carry out technology,efficiency-seeking and other similar targeted foreign direct investment;Strengthen the positive interaction between two-way FDI.On the other hand,enterprises need to increase investment in R&D and human resources to improve their own technological innovation level and the absorption capacity of technological spillovers;they can also strengthen investment and cooperation with developed countries such as the European Union,thereby promoting the green transformation of the industry.