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Exploring the Impact of FDI and Technological Progress Path on Ecological Unequal Exchange within Manufacturing Industry in China

Author

Listed:
  • Mengqi Gong

    (School of Law and Business, Wuhan Institute of Technology, Wuhan 430205, China)

  • Weike Zhang

    (School of Law and Business, Wuhan Institute of Technology, Wuhan 430205, China)

Abstract

Under the premise of jointly promoting global ecological and environmental governance, as an important promoter of economic globalization and the main communicator of low-carbon technology, how does FDI contribute to EUE? In addition, technology can affect ecological inequality exchange by affecting production methods and other aspects, so what role does the path of technological progress play in it? These questions are the focus of this paper. Ecological unequal exchange is calculated using the MRIO model, and this study further examines the influence of FDI on this exchange in the manufacturing sector via technological progress using the systematic GMM model. The study discovered the following: (1) The full sample study reveals that FDI inflows can significantly reduce the EUE of the manufacturing industry, but FDI exacerbates the EUE in the manufacturing industry by further worsening it through the pathway of technological progress (2) Further research finds that the effect of FDI on the EUE in the manufacturing sector through technological progress path will be different due to the source of FDI vary, the causes of ecological unequal exchange, the time period, and the development of a technological progress path.

Suggested Citation

  • Mengqi Gong & Weike Zhang, 2024. "Exploring the Impact of FDI and Technological Progress Path on Ecological Unequal Exchange within Manufacturing Industry in China," Sustainability, MDPI, vol. 16(8), pages 1-24, April.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:8:p:3371-:d:1377574
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    References listed on IDEAS

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    1. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    2. Wolfgang Keller, 2004. "International Technology Diffusion," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 752-782, September.
    3. Althouse, Jeffrey & Guarini, Giulio & Gabriel Porcile, Jose, 2020. "Ecological macroeconomics in the open economy: Sustainability, unequal exchange and policy coordination in a center-periphery model," Ecological Economics, Elsevier, vol. 172(C).
    4. Jonathan E. Haskel & Sonia C. Pereira & Matthew J. Slaughter, 2007. "Does Inward Foreign Direct Investment Boost the Productivity of Domestic Firms?," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 482-496, August.
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    Cited by:

    1. Kamille Hüttel Rasmussen & Martiwi Diah Setiawati, 2025. "Water Unequal Exchange: Embedded Groundwater, Chemicals, and Wastewater in Textile Trade from Bangladesh to the EU and the USA (2000–2023)," Sustainability, MDPI, vol. 17(11), pages 1-24, May.

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