Original scientific paper
https://doi.org/10.1080/1331677X.2023.2191688
Impact of FDI inflows on green TFP based on carbon emissions transmission mechanism
Junfeng Liu
Shaobo Wang
Shiwen Wang
Abstract
Economic globalization and green development have become the
consensus of all countries in the world. The importance of FDI,
carbon emissions and green total factor productivity is self-evident.
This study analyses the impact of FDI inflows on green TFP
and the role of carbon emissions in FDI inflows and green TFP.
The empirical analysis employed kernel density estimation, OLS,
mediation effect model, and panel quantile regression methods
using China’s provincial panel data spanning over 2001–2019. The
facts show that China’s carbon emissions have been reduced
because of environmental regulations and green TFP is still rising
in fluctuation. The results from OLS and mediation effect model
indicate that the impact of FDI inflows on green TFP present an
asymmetric inverted U-shape and FDI influences green TFP by
changing carbon emissions. The panel quantile regression results
also show that FDI has a stronger impact on green TFP in less
developed regions. This paper believes that the introduction of
FDI should be appropriate and should be accompanied by corresponding
environmental regulations, in order to promote green
TFP in countries around the world.
Keywords
FDI inflows; carbon emissions; green TFP; mediation effect
Hrčak ID:
314866
URI
Publication date:
1.9.2023.
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