Impact of Bilateral FDI on Green Total Factor Productivity

• 1、College of Finance and Statistics,Hunan University,ChangSha 410006

Abstract：In the field of international capital, China is both the investor and the investee. In light of the current pursuit of low-carbon economic goals, it is important to clarify the impact of bilateral foreign direct investment on green total factor productivity (GTFP). Based on China\'s provincial panel data from 2005 to 2019, this study uses the SBM model containing undesired output to measure GTFP, and then uses the two-way fixed-effect model to study the effects of inward foreign direct investment (IFDI) and outward foreign direct investment(OFDI)on GTFP. The results are as follows. (1) IFDI has a significant inhibitory effect on GTFP. OFDI can effectively promote the improvement of GTFP, while CDFDI can promote the improvement of GTFP. (2) The influence of bilateral FDI on GTFP is different under different geographical location, green economy level, R&D ability and industrial structure. In order to improve the level of green economy, the government should continue to expand the scale of OFDI, attract cleaner IFDI, and attach importance to the coordinated development of bilateral FDI. Additionally, improving R&D ability and upgrading industrial structure are also important drivers of green economic development.

Keywords： Finance Bilateral FDI Coordinated development Green total factor productivity