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Article

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

School of Economics and Management, Southwest University, Chongqing 400715, China
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Sustainability 2019, 11(10), 2718; https://doi.org/10.3390/su11102718
Received: 3 April 2019 / Revised: 27 April 2019 / Accepted: 1 May 2019 / Published: 14 May 2019
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. View Full-Text
Keywords: heterogeneous FDI; green technology spillover; green total factor productivity; environmental regulation intensity; threshold effect heterogeneous FDI; green technology spillover; green total factor productivity; environmental regulation intensity; threshold effect
MDPI and ACS Style

Hu, J.; Wang, Z.; Huang, Q.; Zhang, X. Environmental Regulation Intensity, Foreign Direct Investment, and Green Technology Spillover—An Empirical Study. Sustainability 2019, 11, 2718. https://doi.org/10.3390/su11102718

AMA Style

Hu J, Wang Z, Huang Q, Zhang X. Environmental Regulation Intensity, Foreign Direct Investment, and Green Technology Spillover—An Empirical Study. Sustainability. 2019; 11(10):2718. https://doi.org/10.3390/su11102718

Chicago/Turabian Style

Hu, Jiangfeng, Zhao Wang, Qinghua Huang, and Xiaoqin Zhang. 2019. "Environmental Regulation Intensity, Foreign Direct Investment, and Green Technology Spillover—An Empirical Study" Sustainability 11, no. 10: 2718. https://doi.org/10.3390/su11102718

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