The Influence And Mechanism Of Foreign Investment On The Green Innovation

In the context of China’s efforts to attract and utilize foreign investment,we uses the index of foreign equity integration to systematically study the specific impact of foreign investment on green innovation of Chinese enterprises caused by the opening up of the capital market and its internal mechanism during 2007-2019.First of all,foreign investment has a significant positive impact on the green innovation level of Chinese enterprises.The result still holds after robustness tests s Further,in order to alleviate the endogenous problems in the model,by adding control variables and introducing whether provinces were concessions or commercial ports from 1840 to 1949 as instrumental variables,the results still show that foreign investment has a significant positive impact on the green innovation level of Chinese enterprises.Mechanism test shows that foreign investment can improve the green innovation level of enterprises mainly by guiding the management to choose offensive strategy and reducing the short-sighted behavior of the management.Secondly,the higher level of external environmental regulation,analysis and media attention will strengthen the positive correlation between foreign investment and green innovation of Chinese enterprises.Further,the positive impact of foreign investment on green innovation of Chinese enterprises is more significant among enterprises with higher internal governance level,competitive enterprises and enterprises with higher marketization level.Finally,we puts forward corresponding policy suggestions for achieving a higher quality opening to the outside world and a “win-win situation” for environmental protection.