Abstract
In the context of China’s synergistic development of import and export strategies and water environmental protection, this paper analyzes the role of two-way FDI synergistic development in water environmental governance efficiency based on panel data of 30 provinces, municipalities and autonomous regions in China from 2004 to 2021. The paper uses a fixed effect model and analyzes the role of heterogeneous technological innovation using the mediation effect model and the panel threshold model. The results of the study show the following: (1) overall, two-way FDI synergistic development helps to improve China’s water environmental governance efficiency; (2) there is regional heterogeneity in the effect of two-way FDI synergistic development on China’s water environmental governance efficiency, with a significant positive effect in areas along the coast and with high FDI synergistic development levels and an inhibitory effect in inland areas; and (3) the two-way FDI synergy enhances the efficiency of China’s water environmental governance by improving the levels of independent innovation and imitation innovation.
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