The Impact of Coordinated Development of Two-Way Foreign Direct Investment on Green Total Factor Productivity

DOI

10.2991/978-94-6463-702-1_57How to use a DOI?

Keywords

Two-way FDI; Green Total Factor Productivity; Mediation Effect

Abstract

After in-depth analysis and comprehensive evaluation of existing studies on the impact of two-way foreign direct investment (FDI) and innovation-driven strategies on China’s green total factor productivity (GTFP), this study adopts the Slacks Based Measure (SBM) directional distance function model that includes global non-expected output. Under the strict constraint of variable returns to scale (VRS), the green Global Malmquist-Luenberger (GML) productivity index of provincial administrative units is analyzed in detail. On this basis, this study constructs an empirical modeling framework and integrates a series of key control variables to comprehensively explore the dynamic impact of two-way FDI on GTFP. The results show that the growth of IFDI has a significant inhibitory effect on GTFP, which to some extent provides empirical support for the applicability of the “polluted paradise” hypothesis in China; the expansion of OFDI and the synergistic effect of bidirectional FDI have a positive impact on the growth of GTFP; and OFDI and bidirectional FDI can be used to improve human capital level and then to enhance GTFP. The expansion of OFDI and the synergistic effect of two-way FDI have a positive impact on GTFP growth; OFDI and two-way FDI can contribute to the growth of green total factor productivity by enhancing human capital.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Yong Tao
PY  - 2025
DA  - 2025/05/05
TI  - The Impact of Coordinated Development of Two-Way Foreign Direct Investment on Green Total Factor Productivity
BT  - Proceedings of the 2025 10th International Conference on Financial Innovation and Economic Development (ICFIED 2025)
PB  - Atlantis Press
SP  - 541
EP  - 547
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-702-1_57
DO  - 10.2991/978-94-6463-702-1_57
ID  - Tao2025
ER  -