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Environmental Regulation, Foreign Direct Investment and Green Technological Progress—Evidence from Chinese Manufacturing Industries

Author

Listed:
  • Jiangfeng Hu

    (School of Economics and Management, Southwest University, Chongqing 400715, China)

  • Zhao Wang

    (School of Economics and Management, Southwest University, Chongqing 400715, China)

  • Yuehan Lian

    (School of Economics and Management, Southwest University, Chongqing 400715, China)

  • Qinghua Huang

    (School of Economics and Management, Southwest University, Chongqing 400715, China)

Abstract

This study examines the spillover effects of foreign direct investment (FDI) on green technology progress rate (as measured by the green total factor productivity). The analysis utilizes two measures of FDI, labor-based FDI and capital-based FDI, and separately investigates four sets of industry classifications—high/low discharge regulation and high/low emission standard regulation. The results indicate that in the low discharge regulation and low emission standard regulation industry, labor-based FDI has a significant negative spillover effect, and capital-based FDI has a significant positive spillover effect. However, in the high-intensity environmental regulation industry, the negative influence of labor-based FDI is completely restrained, and capital-based FDI continues to play a significant positive green technological spillover effects. These findings have clear policy implications: the government should be gradually reducing the labor-based FDI inflow or increasing stringency of environmental regulation in order to reduce or eliminate the negative spillover effect of the labor-based FDI.

Suggested Citation

  • Jiangfeng Hu & Zhao Wang & Yuehan Lian & Qinghua Huang, 2018. "Environmental Regulation, Foreign Direct Investment and Green Technological Progress—Evidence from Chinese Manufacturing Industries," IJERPH, MDPI, vol. 15(2), pages 1-14, January.
    • Handle: RePEc:gam:jijerp:v:15:y:2018:i:2:p:221-:d:129110
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    Cited by:

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    13. Bingtao Qin & Yulu Gai & Liming Ge & Pengbo Sun & Yongwei Yu & Yi Zheng, 2022. "FDI, Technology Spillovers, and Green Innovation: Theoretical Analysis and Evidence from China," Energies, MDPI, vol. 15(20), pages 1-25, October.
    14. Qamri, Ghulam Muhammad & Sheng, Bin & Adeel-Farooq, Rana Muhammad & Alam, Gazi Mahabubul, 2022. "The criticality of FDI in Environmental Degradation through financial development and economic growth: Implications for promoting the green sector," Resources Policy, Elsevier, vol. 78(C).
    15. YuBiao Hao & XueCheng Zhang, 2023. "The impact of environmental regulation on urban green output efficiency: evidence from China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(6), pages 5717-5735, June.
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    18. Song, Wenfei & Han, Xianfeng, 2022. "The bilateral effects of foreign direct investment on green innovation efficiency: Evidence from 30 Chinese provinces," Energy, Elsevier, vol. 261(PB).
    19. Tingting Huang & Bin Xiong, 2022. "Space Comparison of Agricultural Green Growth in Agricultural Modernization: Scale and Quality," Agriculture, MDPI, vol. 12(7), pages 1-17, July.
    20. Yuanshuo Xu & Jiahe Liang & Zhaoyingzi Dong & Minjun Shi, 2022. "Can Environmental Regulation Promote Green Innovation and Productivity? The Moderating Role of Government Interventions in Urban China," IJERPH, MDPI, vol. 19(21), pages 1-17, October.
    21. Alper Yılmaz, 2023. "Carbon emissions effect of trade openness and energy consumption in Sub-Saharan Africa," SN Business & Economics, Springer, vol. 3(2), pages 1-28, February.
    22. Hongcheng Shen & Yi Liu, 2022. "Can Circular Economy Legislation Promote Pollution Reduction? Evidence from Urban Mining Pilot Cities in China," Sustainability, MDPI, vol. 14(22), pages 1-22, November.
    23. Yongquan Zhao & Ziwei Zhang, 2023. "Distribution of Spatial and Temporal Heterogeneity of Green Total-Factor Productivity in the Chinese Manufacturing Industry, and the Influencing Factors," Sustainability, MDPI, vol. 15(4), pages 1-15, February.

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