The Impact Of FDI On Green Total Factor Productivity

From 2005 to 2020,foreign direct investment in Shandong Province and Jiangsu Province has entered a period of rapid development,with the scale expanding rapidly and the sources diversified.More and more foreign direct investment flows to the tertiary industry,bringing rich resources and valuable development experience to the two provinces.Nowadays,Shandong Province and Jiangsu Province are in the process of economic transformation,foreign direct investment may not only promote the high-quality economic development of the two provinces,but also bring environmental pollution,and have different impacts on the green total factor productivity of the two provinces.Green total factor productivity,as an improvement of total factor productivity,can better reflect the status of green development and the quality of economic development in a region because environmental costs are deducted.Therefore,taking Jiangsu province as the comparison subject,studying the impacts of FDI(Foreign Direct Investment)on GTFP(Green Total Factor Productivity)in Shandong and Jiangsu provinces,which has great significance for Shandong province to formulate reasonable investment policy and promote the high quality development of economy.First of all,this article analyzed the influence mechanism of FDI on GTFP.Secondly,compared and analyzed the utilization of foreign capitals in Shandong and Jiangsu provinces from the perspectives of FDI development history,scale,origin,flow direction industries and regions.Furthermore,used the SBM-ML index to measure the GTFP of the two provinces from the year 2005 to 2020.Finally,used SYS-GMM method and the panel data of 16 cities in Shandong province as well as the panel data of 13 cities in Jiangsu province to conduct empirical study on the impacts of FDI on GTFP in the two provinces from the year 2005 to 2020.At the same time,industrial structure,environmental regulation,financial development level and government intervention are added as control variables.The main research results of this article includes: Firstly,green total factor productivity of Shandong and Jiangsu province from the year 2005 to 2020 are both greater than 1,which are mainly affected by the progress of green technology and shows continuing upward trends.Secondly,FDI has a significant promoting effects on GTFP in both Shandong and Jiangsu province,and the influence degree in Jiangsu province is higher than Shandong province.Thirdly,environmental regulation has a positive impact on GTFP in the both provinces,government intervention and industrial structure inhibited the growth of GTFP in the both provinces.However,the level of financial development has no significant effects on the GTFP of both provinces.Finally,summarized the article through the comparative analysis of combining theories and demonstrations of Shandong and Jiangsu provinces,and puts forwarded policy suggestions on attracting investments in Shandong province from the improve attracting foreign investments procedures,optimize industrial structure,strengthen environmental regulation,develop green finance,and reduce government intervention five aspects.