ORIGINAL RESEARCH
Does China’s Two-Way FDI Coordination Improve
Its Green Total Factor Productivity?
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1
School of Business, Jiangsu Ocean University, Lianyungang, China
2
Graduate Business School, UCSI University, Kuala Lumpur, Malaysia
Submission date: 2023-08-05
Final revision date: 2023-08-19
Acceptance date: 2023-08-30
Online publication date: 2023-11-06
Publication date: 2023-12-19
Corresponding author
Bing He
School of Business, Jiangsu Ocean University, China
Pol. J. Environ. Stud. 2024;33(1):173-183
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ABSTRACT
Since the 21st century, the green development impact of foreign direct investment (FDI) has attracted
much attention from scholars. Especially, the influence of FDI-coordinated development on green total
factor productivity (GTFP) is of great research significance. Using provincial-level panel data in China
from 2011 to 2020 with an intermediary effect model and a threshold effect model, this study examines
the impact of two-way FDI coordination development on GTFP. The results indicate that: (1) Two-way
FDI coordination development significantly improves GTFP growth in China. Compared with the eastern
region, the effects in central and western China are stronger. However, the effect in northeastern China
is negative. (2) The mechanism test found that two-way FDI coordination development significantly
improves GTFP through talent innovation, technological innovation, and institutional innovation.
(3) The threshold analysis indicates that the impact on GTFP is stronger when research and development
(R&D) intensity and urbanization are low. This study not only provides evidence for evaluating the
impact of two-way FDI coordination development, but also provides a reference for promoting domestic
green transformation.