Environmental regulation, foreign direct investment, and export sophistication of China: an empirical study based on dynamic system GMM and threshold model

2021 ◽  
Author(s):  
Hongji Wang ◽  
Mai Yang ◽  
Rui He ◽  
Peng Zheng
Keyword(s):  
Foreign Direct Investment ◽  
Empirical Study ◽  
Dynamic System ◽  
Environmental Regulation ◽  
Direct Investment ◽  
Threshold Model ◽  
System Gmm

scholarly journals Environmental Regulation Intensity, Foreign Direct Investment, and Green Technology Spillover—An Empirical Study

2019 ◽  
Vol 11 (10) ◽  
pp. 2718 ◽  
Author(s):  
Jiangfeng Hu ◽  
Zhao Wang ◽  
Qinghua Huang ◽  
Xiaoqin Zhang
Keyword(s):  
Foreign Direct Investment ◽  
Linear Model ◽  
Environmental Regulation ◽  
Total Factor Productivity ◽  
Direct Investment ◽  
Threshold Model ◽  
Green Technology ◽  
Factor Productivity ◽  
Technology Spillover ◽  
Static Threshold

Many researchers have studied the relationships among heterogeneous foreign direct investment (FDI), environmental regulation, and green total factor productivity. However, no research has been done on how different types of FDI can result in green technology spillover under different levels of environmental regulation intensity. To address this research gap, in this paper, we build a static linear panel model, a static panel threshold model, and a dynamic panel threshold model to investigate the environmental regulatory threshold effect of labor-based FDI and capital-based FDI in terms of their green technology spillover. Based on the measurement of green total factor productivity (GTFP) of 36 industry sectors in China from 2003 to 2015, we first compare the threshold effects of environmental regulation on green technology spillover between labor-based FDI and capital-based FDI with a static linear model and a static threshold model. The results show that environmental regulation is unable to significantly promote the green technology spillover of labor-based FDI. However, intensifying environmental regulation can reduce the negative impact of labor-based FDI on GTFP. The effect of environmental regulation on green technology spillover of capital-based FDI is more complex. In the static linear model, environmental regulation can significantly promote the green technology spillover of capital-based FDI. In the static threshold model, the green technology spillover of capital-based FDI exists only when the environmental regulation intensity is sufficiently low or sufficiently high. Finally, the dynamic threshold model is adopted for robustness check. The results show when the environmental regulation intensity is higher than a threshold, both types of FDI can indeed result in green technology spillover. In short, our results prove that to ensure that FDI results in green technology spillover, it is necessary to continue to strengthen environmental regulation.

Environmental Regulation: An Incentive for Foreign Direct Investment

2011 ◽  
Vol 19 (3) ◽  
pp. 568-578 ◽  
Author(s):  
Bouwe R. Dijkstra ◽  
Anuj Joshua Mathew ◽  
Arijit Mukherjee
Keyword(s):  
Foreign Direct Investment ◽  
Environmental Regulation ◽  
Direct Investment
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