Knowledge Agora



Similar Articles

Title The green spillover effect of the inward foreign direct investment: Market versus innovation
ID_Doc 35669
Authors Wang, MR; Zhang, X; Hu, Y
Title The green spillover effect of the inward foreign direct investment: Market versus innovation
Year 2021
Published
Abstract Little work has focused on whether or under which conditions foreign direct investment (FDI) can spill cleanerproduction technologies. To explore the complicated effects of FDI's technical spillover on the green innovation effort of host countries, this paper develops a multi-stage decision-making model in which abatement treatments of firms are described. It is found that marketization level and innovation capacity of the host country are two key factors impacting FDI's green spillovers. The results show there are preconditions in terms of green spillovers, i.e., FDI can improve or has no impact on the environmental performance of local firms under different conditions. Moreover, there are double threshold effects: the degree of FDI's green spillover varies with the different levels of the two threshold variables of marketization and innovation capacity. An increase in innovation capacity always motivates cleaner-technology diffusion in host countries. In addition, a moderate tax system is conducive to the green spillovers of FDI. This paper provides a theoretical support for the pollution halo hypothesis that FDI can promote cleaner development of host countries. Finally, from a perspective of cleanerproduction practice, the policy implications are discussed to make production cleaner and ensure environmental sustainability.
PDF

Similar Articles

ID Score Article
35141 Song, WF; Han, XF The bilateral effects of foreign direct investment on green innovation efficiency: Evidence from 30 Chinese provinces(2022)
35301 Shi, X; Zeng, YJ; Wu, YR; Wang, S Outward foreign direct investment and green innovation in Chinese multinational companies(2023)International Business Review, 32, 5
30390 Shao, YM; Li, JL; Zhang, XL Outward foreign direct investment and green technology innovation: A company and host country perspective(2024)
30250 Behera, P; Sethi, N Nexus between environment regulation, FDI, and green technology innovation in OECD countries(2022)Environmental Science And Pollution Research, 29, 35
30615 Lei, X; Chen, XL; Zhang, B Unleashing the spillover potential: Exploring the role of technology-seeking investment in driving green innovation of host countries(2024)
34861 Luo, YS; Salman, M; Lu, ZN Heterogeneous impacts of environmental regulations and foreign direct investment on green innovation across different regions in China(2021)
30257 Qin, BT; Gai, YL; Ge, LM; Sun, PB; Yu, YW; Zheng, Y FDI, Technology Spillovers, and Green Innovation: Theoretical Analysis and Evidence from China(2022)Energies, 15, 20
35497 Bai, Y; Qian, QQ; Jiao, JL; Li, LL; Li, FY; Yang, RR Can environmental innovation benefit from outward foreign direct investment to developed countries? Evidence from Chinese manufacturing enterprises(2020)Environmental Science And Pollution Research, 27, 12
30348 Qin, BT; Gao, YQ; Ge, LM; Zhu, JL The Influence Mechanism Of Outward Fdi Reverse Technology Spillovers On China?S Green Innovation(2023)Technological And Economic Development Of Economy, 29, 2
32628 Shao, HH; Huang, XP; Wen, HW Foreign direct investment, development strategy, and green innovation(2024)Energy & Environment, 35, 6
Scroll