A Study On The Impact Of Foreign Direct Investment On Carbon Performance From A Heterogeneity Perspective

Foreign direct investment(FDI),as a major engine of economic growth,is accompanied by the dilemma of resource depletion,environmental degradation and climate anomalies brought about by sloppy growth,which is thus detrimental to the low-carbon development of China.The key means to achieve low-carbon development is to improve carbon performance,therefore,it is of theoretical and practical significance to explore the impact of FDI on carbon performance.Most existing studies treat FDI as homogeneous capital,ignoring the differential impact of different nature of FDI on carbon performance.In view of this,this thesis analyzes the impact of heterogeneous FDI on China’s carbon performance from two perspectives,namely,differences in investment mode and investment industry,and divides FDI into joint venture FDI,wholly-owned FDI and FDI in three major industries,in order to determine what kind of capital attraction mode is beneficial to the growth of China’s carbon performance.First,based on the pollution refuge hypothesis,pollution halo hypothesis,Porter’s hypothesis,international production trade-off theory and production cycle theory,this thesis constructs a theoretical framework for the impact of FDI on carbon performance,systematically analyzes the impact mechanism of FDI on carbon performance,and further analyzes the differences in the impact of FDI in different investment modes and FDI in different industries on carbon performance.Second,descriptive statistical analysis is applied to analyze the overall situation,investment mode,industry distribution,and source distribution of FDI in China in order to grasp the current situation,trends and characteristics of FDI in China.Then,based on China’s provincial panel data from 2009-2019(except Tibet),the SE-SBM model is used to measure China’s inter-provincial carbon performance.Finally,based on 28 inter-provincial dynamic panel data in China from 2009-2019,the systematic GMM method is used to empirically test the differences in the impact of FDI on China’s carbon performance from an overall perspective and by grouping FDI based on business practices and three industries respectively,and an extended regression analysis is conducted to explore the impact of geographical factors by East and West.The main findings of this thesis are as follows:(1)Overall,FDI inflows into China significantly contribute to the growth of carbon performance.(2)Joint venture type FDI significantly enhances China’s carbon performance,but the enhancement effect of wholly-owned FDI is not significant.(3)FDI into the first industry and the tertiary industry significantly boosted China’s carbon performance,while FDI into the second industry had a negative but insignificant effect on carbon performance.(4)FDI in eastern China significantly improves carbon performance,while FDI in western China has a positive but insignificant impact on carbon performance,while FDI in central China significantly inhibits carbon performance.Therefore,the formulation of refined investment attraction policies plays an important role in the achievement of China’s dual carbon goal.