Environmental technology effect of two-way foreign direct investment interactive development in China

This paper examines the impact of the interactive development of inward foreign direct investment (IFDI) and outward foreign direct investment (OFDI) [two-way foreign direct investment (FDI)] on regional environmental technology by using data from 30 provinces and cities in China from 2004 to 2017....

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Main Authors: Mengqi Gong, Zhe You
Format: Article
Language:English
Published: Frontiers Media S.A. 2022-08-01
Series:Frontiers in Ecology and Evolution
Subjects:
Online Access:https://www.frontiersin.org/articles/10.3389/fevo.2022.954614/full
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author Mengqi Gong
Zhe You
author_facet Mengqi Gong
Zhe You
author_sort Mengqi Gong
collection DOAJ
description This paper examines the impact of the interactive development of inward foreign direct investment (IFDI) and outward foreign direct investment (OFDI) [two-way foreign direct investment (FDI)] on regional environmental technology by using data from 30 provinces and cities in China from 2004 to 2017. To overcome the possible endogeneity problem of the model, the system generalized moment estimation method (system GMM) is used to estimate the model. The results show the following: First, two-way FDI could inhibit the progress of regional environmental technology. Second, the results of the regional heterogeneity test show that the development of two-way FDI interaction promotes the environmental technology in the eastern region, but inhibits the environmental technology in the central and western regions of China. Third, the heterogeneity test results of the two-way FDI interactive development degree show that the two-way FDI interactive development in China promotes environmental technology in high-interactive areas, but inhibits environmental technology in low-interactive areas. Finally, the results of the phased heterogeneity test show that as China’s two-way FDI interactive development gradually increases, its inhibitory effect on regional environmental technology gradually declines. Therefore, it is believed that in the future, China should further strengthen inward FDI and OFDI, realize the benign interaction of two-way FDI, and finally promote the progress of regional environmental technology.
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spelling doaj.art-022677be36024ee49b9727b0eeec4b862022-12-22T01:40:11ZengFrontiers Media S.A.Frontiers in Ecology and Evolution2296-701X2022-08-011010.3389/fevo.2022.954614954614Environmental technology effect of two-way foreign direct investment interactive development in ChinaMengqi GongZhe YouThis paper examines the impact of the interactive development of inward foreign direct investment (IFDI) and outward foreign direct investment (OFDI) [two-way foreign direct investment (FDI)] on regional environmental technology by using data from 30 provinces and cities in China from 2004 to 2017. To overcome the possible endogeneity problem of the model, the system generalized moment estimation method (system GMM) is used to estimate the model. The results show the following: First, two-way FDI could inhibit the progress of regional environmental technology. Second, the results of the regional heterogeneity test show that the development of two-way FDI interaction promotes the environmental technology in the eastern region, but inhibits the environmental technology in the central and western regions of China. Third, the heterogeneity test results of the two-way FDI interactive development degree show that the two-way FDI interactive development in China promotes environmental technology in high-interactive areas, but inhibits environmental technology in low-interactive areas. Finally, the results of the phased heterogeneity test show that as China’s two-way FDI interactive development gradually increases, its inhibitory effect on regional environmental technology gradually declines. Therefore, it is believed that in the future, China should further strengthen inward FDI and OFDI, realize the benign interaction of two-way FDI, and finally promote the progress of regional environmental technology.https://www.frontiersin.org/articles/10.3389/fevo.2022.954614/fullinward foreign direct investmentoutward foreign direct investmenttwo-way FDI interactive developmentenvironmental technologyheterogeneity
spellingShingle Mengqi Gong
Zhe You
Environmental technology effect of two-way foreign direct investment interactive development in China
Frontiers in Ecology and Evolution
inward foreign direct investment
outward foreign direct investment
two-way FDI interactive development
environmental technology
heterogeneity
title Environmental technology effect of two-way foreign direct investment interactive development in China
title_full Environmental technology effect of two-way foreign direct investment interactive development in China
title_fullStr Environmental technology effect of two-way foreign direct investment interactive development in China
title_full_unstemmed Environmental technology effect of two-way foreign direct investment interactive development in China
title_short Environmental technology effect of two-way foreign direct investment interactive development in China
title_sort environmental technology effect of two way foreign direct investment interactive development in china
topic inward foreign direct investment
outward foreign direct investment
two-way FDI interactive development
environmental technology
heterogeneity
url https://www.frontiersin.org/articles/10.3389/fevo.2022.954614/full
work_keys_str_mv AT mengqigong environmentaltechnologyeffectoftwowayforeigndirectinvestmentinteractivedevelopmentinchina
AT zheyou environmentaltechnologyeffectoftwowayforeigndirectinvestmentinteractivedevelopmentinchina