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Two-Way FDI assists agricultural sustainable development: Based on digitalization and greening perspectives

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  • Tingwei Chen
  • Feng Yang
  • Yujie Li
  • Zongbin Zhang

Abstract

With the new challenges and crises facing agriculture, digitalization and green transformation have become important ways to solve the problems. This paper uses an international economics perspective to chart a new path for sustainable agricultural development. Specifically, it analyzes whether two-way international direct investment (FDI) can facilitate agricultural digital-green fusion(DGF)? Using a sample of 31 provinces (autonomous regions) from 2012 to 2021, this study finds: (1) Two-way FDI can significantly contribute to agriculture’s DGF. (2) In the mechanism test, it is proved that two-way FDI can promote agriculture’s DGF level by promoting green technology innovation capacity and overall regional technology innovation capacity. (3) The positive effects of two-way FDI are prominent in the eastern and central regions, coastal regions, and economically developed areas. (4) In the spatial Durbin model, the local two-way FDI growth improves agriculture’s DGF level in the surrounding areas to a certain extent. The government is advised to prioritize openness, foster an environment for technological innovation, leverage spatial radiation for agricultural DGF, and advance digitally empowered agricultural modernization.

Suggested Citation

  • Tingwei Chen & Feng Yang & Yujie Li & Zongbin Zhang, 2024. "Two-Way FDI assists agricultural sustainable development: Based on digitalization and greening perspectives," PLOS ONE, Public Library of Science, vol. 19(2), pages 1-21, February.
    • Handle: RePEc:plo:pone00:0296896
    DOI: 10.1371/journal.pone.0296896
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