scholarly journals Environmental Regulation, Outward Foreign Direct Investment, and Low-Carbon Innovation: An Empirical Study Based on Provincial Spatial Panel Data in China

2021 ◽  
Vol 2021 ◽  
pp. 1-14
Author(s):  
Chaojun Yang ◽  
Liju Liu ◽  
Wenke Yang ◽  
Tanveer Ahmed
Keyword(s):  
Foreign Direct Investment ◽  
Environmental Regulation ◽  
Direct Investment ◽  
Environmental Control ◽  
Spillover Effects ◽  
Outward Foreign Direct Investment ◽  
Low Carbon ◽  
Regional Heterogeneity ◽  
Spatial Panel Data ◽  
The Relationship

The low-carbon transformation has turned out to be a challenging task faced by government agencies, enterprises, and society because of the global warming. Endorsing the expansion of the low-carbon revolution is considered as an essential measure for low-carbon alteration and advancement. Therefore, articulating realistic environmental control strategies intended to enhance the motivation level of low-carbon innovation, though outward foreign direct investment (OFDI) can produce direct and indirect influences on the growth of low-carbon innovation. According to the data of 30 provinces of China from 2004 to 2017, the relationship among environmental regulation, OFDI, and low-carbon innovation was analyzed using the spatial econometric model. Based on the analyzed data, the following conclusions were drawn. (i) From the national and regional perspectives, China’s low-carbon innovation takes understandable agglomeration features in the longitudinal dimension. In addition, environmental regulation plays a key role in promoting low-carbon innovation and regional heterogeneity. (ii) Environmental regulation might force enterprises outward foreign direct investment efficiently and increase the level of OFDI that will be capable of promoting low-carbon innovation. (iii) OFDI acts as an intermediary in the relationship between environmental regulation and low-carbon innovation, and this role has regional heterogeneity. (iv) There are significant spatial spillover effects of environmental regulation and OFDI on low-carbon innovation, environmental regulation on OFDI, and the intermediary effect of OFDI on environmental regulation and low-carbon innovation. This study supplements our understanding of the relationship between environmental regulation and OFDI, in addition to low-carbon innovation, which provides illumination for enterprise practice, as well as decision-makers.

scholarly journals Nonlinear Effects of Urbanization and Outward Foreign Direct Investment on Carbon Emissions in China

2018 ◽  
Vol 10 (12) ◽  
pp. 4411 ◽  
Author(s):  
Ming Yi ◽  
Mengqi Gong ◽  
Ting Wu ◽  
Yue Wang
Keyword(s):  
Foreign Direct Investment ◽  
Carbon Emissions ◽  
Direct Investment ◽  
Time Series Data ◽  
Series Data ◽  
Outward Foreign Direct Investment ◽  
Low Carbon ◽  
Markov Switching Model ◽  
Causality Test ◽  
High Emission

It is essential to explore the relationship between China’s urbanization, outward foreign direct investment, and carbon emissions, in order to better understand China’s carbon emissions reduction target. To this end, the nonlinear Granger causality test and Markov-switching model are applied to analyze the structural effects of urbanization and outward foreign direct investment on domestic emissions, on the basis of time series data from 1984–2016. The results show that the promotion effect of outward foreign direct investment on carbon emissions is increased from low-carbon regime to high-emission regime. Specifically, 1% increase in OFDI leads to a rise in carbon emissions by 0.064% and 0.112% under the former and latter regime respectively. Unlike the effect trend of outward foreign direct investment, the effect of urbanization on carbon emissions is decreased from a high-emission regime (5.221% rise in carbon emissions with 1% increase in the level of urbanization) to a low-carbon regime (3.133% rise in carbon emissions with 1% increase in the level of urbanization).

scholarly journals FDI, Spillover Effect and Green Total Factor Productivity (GTFP) - Research from the Perspective of Regional Heterogeneity

2021 ◽  
Vol 292 ◽  
pp. 03051
Author(s):  
Hang Xiao ◽  
Xiangjian Zhang
Keyword(s):  
Environmental Regulation ◽  
Spillover Effect ◽  
Spillover Effects ◽  
Bottom Line ◽  
Regional Heterogeneity ◽  
Green Development ◽  
Starting Point ◽  
Mechanism Of Impact ◽  
The Impact ◽  
The Relationship

The report of the 19th National Congress of the Communist Party of China emphasized the need to promote green development and strengthen the environmental protection system. China’s introduction of foreign investment has gradually shifted from emphasis on “quantity” to “quality” in the context of the new normal. In view of this, this paper discussed the mechanism of impact of FDI on China’s regional GTFP with the relationship between FDI and the regional GTFP as the logic starting point. The research results show that FDI has in general exerted a “pollution halo” effect in China, which affects the regional GTFP through technology and human capital spillover effects; FDI has non-linear impact on GTFP at different levels of environmental regulation and marketization; “pollution haven", “bottom line competition” and other phenomena will occur at low levels of environmental regulation and marketization; FDI will inhibit the increase in China’s regional GTFP; the impact of FDI on GTFP is regionally different, and the western and northeastern regions are “pollution havens” in China.

Peer effects in outward foreign direct investment: evidence from China

2019 ◽  
Vol 58 (4) ◽  
pp. 705-724 ◽  
Author(s):  
Ruicheng Wang ◽  
William Chongyang Zhou
Keyword(s):  
Foreign Direct Investment ◽  
Multinational Corporations ◽  
Peer Effects ◽  
Direct Investment ◽  
Important Influence ◽  
Policy Uncertainty ◽  
Outward Foreign Direct Investment ◽  
Content Type ◽  
Internationalization Strategy ◽  
The Relationship

Purpose Most previous research assumes that the outward foreign direct investment (OFDI) decisions of multinational corporations (MNCs) are made independently of the actions or characteristics of their peers. Therefore, the important influence of peer effects on the OFDI strategy is often neglected. The purpose of this paper is to identify two broad categories of peer effects, i.e. learning-based and profit-driven imitations and examine the important influence of peer effects on MNCs’ internationalization strategy. Design/methodology/approach Using Chinese manufacturing firms as the empirical sample, the authors employ an econometric method (logit regression) to test the relationship between peer effects and an internationalization strategy. Findings Learning-based and profit-driven imitations are positively associated with a focal MNC’s OFDI decision. Policy uncertainty also positively moderates the relationship between peer effects and the OFDI strategy. Moreover, both peer effects are amplified when a firm is equipped with a dense export network. Originality/value The study offers researchers and practitioners a detailed view of interorganizational imitation behavior in terms of an internationalization strategy.

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