Knowledge Agora



Scientific Article details

Title Environmental Regulation, Foreign Direct Investment, and Green Total Factor Productivity: An Empirical Test Based on Chinese City-Level Panel Data
ID_Doc 31140
Authors Chen, L; Hu, LJ; He, F; Zhang, HQ
Title Environmental Regulation, Foreign Direct Investment, and Green Total Factor Productivity: An Empirical Test Based on Chinese City-Level Panel Data
Year 2024
Published Sustainability, 16, 13
DOI 10.3390/su16135620
Abstract Environmental regulation is a crucial tool for government intervention in the field of green technology innovation. It can boost an enterprise's competitiveness and encourage green technology innovation, both of which have a major effect on luring foreign investment. This paper first systematically elaborates on the relationship between environmental regulation, foreign direct investment (FDI), and green total factor productivity (GTFP) and then combines panel data from Chinese cities to empirically test these relationships using various methods, such as the mediation effect model, two-stage least squares, and difference-in-differences method. The study found that environmental regulation significantly boosts FDI and GTFP. FDI helps to improve GTFP, and environmental regulation can impact GTFP indirectly through FDI. The way that FDI and environmental regulations affect GTFP demonstrates regional variation. Large cities with high economic growth gain more from environmental regulation. FDI has a stronger promotion effect on GTFP in medium- and small-sized cities than in large-sized cities, and it does not significantly impact GTFP in cities with high levels of economic development or in the eastern region.
Author Keywords environmental regulation; green technology innovation; foreign direct investment; green total factor productivity
Index Keywords Index Keywords
Document Type Other
Open Access Open Access
Source Science Citation Index Expanded (SCI-EXPANDED); Social Science Citation Index (SSCI)
EID WOS:001269372200001
WoS Category Green & Sustainable Science & Technology; Environmental Sciences; Environmental Studies
Research Area Science & Technology - Other Topics; Environmental Sciences & Ecology
PDF https://www.mdpi.com/2071-1050/16/13/5620/pdf?version=1720592654
Similar atricles
Scroll