Foreign direct investment entry mode and China’s carbon productivity based on spatial econometric model

As the world’s largest developing country and the largest carbon emitter, China must consider economic growth and carbon emission reduction in development. Therefore, improving carbon productivity is an important goal of China at present. At the same time, China’s foreign capital inflow has always b...

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Main Authors: Decai Tang, Rui Yi, Haojia Kong, Dan Da, Valentina Boamah
Format: Article
Language:English
Published: Frontiers Media S.A. 2022-08-01
Series:Frontiers in Environmental Science
Subjects:
Online Access:https://www.frontiersin.org/articles/10.3389/fenvs.2022.922151/full
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author Decai Tang
Decai Tang
Rui Yi
Haojia Kong
Dan Da
Valentina Boamah
author_facet Decai Tang
Decai Tang
Rui Yi
Haojia Kong
Dan Da
Valentina Boamah
author_sort Decai Tang
collection DOAJ
description As the world’s largest developing country and the largest carbon emitter, China must consider economic growth and carbon emission reduction in development. Therefore, improving carbon productivity is an important goal of China at present. At the same time, China’s foreign capital inflow has always been at the forefront of the world, and foreign direct investment (FDI) has had various impacts on China’s carbon productivity. Based on the panel data of 25 provinces in China from 2007 to 2019, this paper uses a spatial econometric model to study the difference in the impact of FDI on China’s carbon productivity under different entry modes. The study found that: when FDI enters China in the mode of joint ventures, there is a positive spatial spillover effect, which is conducive to improving China’s carbon productivity; while when FDI enters China in the mode of wholly foreign-owned enterprises, there is a negative spatial spillover effect, which will inhibit the improvement of China’s carbon productivity. Therefore, when introducing foreign capital, the Chinese government should formulate differentiated foreign investment policies according to the different entry modes of FDI, and encourage more FDI to enter China in the mode of joint ventures.
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spelling doaj.art-82c05e83648c4aed9fdd04b7ca80ba282022-12-22T01:35:48ZengFrontiers Media S.A.Frontiers in Environmental Science2296-665X2022-08-011010.3389/fenvs.2022.922151922151Foreign direct investment entry mode and China’s carbon productivity based on spatial econometric modelDecai Tang0Decai Tang1Rui Yi2Haojia Kong3Dan Da4Valentina Boamah5School of Law and Business, Sanjiang University, Nanjing, ChinaChina Institute of Manufacturing Development, Nanjing University of Information Science and Technology, Nanjing, ChinaChina Institute of Manufacturing Development, Nanjing University of Information Science and Technology, Nanjing, ChinaSchool of Economics and Management, Nanjing University of Science and Technology, Nanjing, ChinaSchool of Business, Jiangsu Open University, Nanjing, ChinaChina Institute of Manufacturing Development, Nanjing University of Information Science and Technology, Nanjing, ChinaAs the world’s largest developing country and the largest carbon emitter, China must consider economic growth and carbon emission reduction in development. Therefore, improving carbon productivity is an important goal of China at present. At the same time, China’s foreign capital inflow has always been at the forefront of the world, and foreign direct investment (FDI) has had various impacts on China’s carbon productivity. Based on the panel data of 25 provinces in China from 2007 to 2019, this paper uses a spatial econometric model to study the difference in the impact of FDI on China’s carbon productivity under different entry modes. The study found that: when FDI enters China in the mode of joint ventures, there is a positive spatial spillover effect, which is conducive to improving China’s carbon productivity; while when FDI enters China in the mode of wholly foreign-owned enterprises, there is a negative spatial spillover effect, which will inhibit the improvement of China’s carbon productivity. Therefore, when introducing foreign capital, the Chinese government should formulate differentiated foreign investment policies according to the different entry modes of FDI, and encourage more FDI to enter China in the mode of joint ventures.https://www.frontiersin.org/articles/10.3389/fenvs.2022.922151/fullcarbon productivityforeign direct investmententry modejoint venturewholly foreign owned enterprisespatial spillover effect
spellingShingle Decai Tang
Decai Tang
Rui Yi
Haojia Kong
Dan Da
Valentina Boamah
Foreign direct investment entry mode and China’s carbon productivity based on spatial econometric model
Frontiers in Environmental Science
carbon productivity
foreign direct investment
entry mode
joint venture
wholly foreign owned enterprise
spatial spillover effect
title Foreign direct investment entry mode and China’s carbon productivity based on spatial econometric model
title_full Foreign direct investment entry mode and China’s carbon productivity based on spatial econometric model
title_fullStr Foreign direct investment entry mode and China’s carbon productivity based on spatial econometric model
title_full_unstemmed Foreign direct investment entry mode and China’s carbon productivity based on spatial econometric model
title_short Foreign direct investment entry mode and China’s carbon productivity based on spatial econometric model
title_sort foreign direct investment entry mode and china s carbon productivity based on spatial econometric model
topic carbon productivity
foreign direct investment
entry mode
joint venture
wholly foreign owned enterprise
spatial spillover effect
url https://www.frontiersin.org/articles/10.3389/fenvs.2022.922151/full
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AT ruiyi foreigndirectinvestmententrymodeandchinascarbonproductivitybasedonspatialeconometricmodel
AT haojiakong foreigndirectinvestmententrymodeandchinascarbonproductivitybasedonspatialeconometricmodel
AT danda foreigndirectinvestmententrymodeandchinascarbonproductivitybasedonspatialeconometricmodel
AT valentinaboamah foreigndirectinvestmententrymodeandchinascarbonproductivitybasedonspatialeconometricmodel