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.
Highlights
It is generally believed that developing countries reverse the situation that lacking of technological innovation in primary stage of development through utilizing the technology spillover effect of foreign direct investment (FDI) [1]
Does FDI really bring beneficial technological spillover effect to host countries? Yet another, more serious environmental problem has emerged before the crucial question has been answered explicitly
Since this paper mainly focuses on the problem of the green technology spillover effect of FDI
Summary
It is generally believed that developing countries reverse the situation that lacking of technological innovation in primary stage of development through utilizing the technology spillover effect of FDI [1]. Does FDI really bring beneficial technological spillover effect to host countries? The PM2.5 concentration in Beijing during 2013 significantly exceeded the health standard suggested by the World Health Organization (WHO) [2,3,4], and has caused the total economic losses of. The Global Burden of Disease (GBD) study undertaken by Institute for Health Metrics and Evaluation and World Health Organization (WHO) linked over 3.2 million premature deaths to PM pollution in 2010, and roughly one-third (1.23 million) of the world’s estimated PM pollution-related premature deaths were in China [8]
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