FDI, Technology Spillovers, and Green Innovation: Theoretical Analysis and Evidence from China

Bingtao Qin, Yulu Gai, Liming Ge (), Pengbo Sun (), Yongwei Yu and Yi Zheng
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Bingtao Qin: Business School, University of Shanghai for Science and Technology, Shanghai 200093, China
Yulu Gai: Business School, University of Shanghai for Science and Technology, Shanghai 200093, China
Liming Ge: School of Urban and Regional Sciences, Shanghai University of Finance and Economics, Shanghai 200433, China
Pengbo Sun: School of Economics, NanKai University, Tianjin 300071, China
Yongwei Yu: Business School, University of Shanghai for Science and Technology, Shanghai 200093, China
Yi Zheng: China (Anhui) Pilot Free Trade Zone Institute, Anhui University, Hefei 230061, China

Energies, 2022, vol. 15, issue 20, 1-25

Abstract: Foreign direct investment (FDI) technology spillovers play an increasingly important role in a host country’s development. Evaluating the positive effect of FDI inflows on green innovation is essential for correct city design. Based on the panel data of 262 cities in China from 2004 to 2018, we first analyzed the impact of FDI technology spillovers on green innovation in Chinese cities and then tested the threshold effect in four absorptive capacity factors: environmental regulation, economic growth, human capital, and industry size. Finally, we compared the time and space of two types of cities crossing the threshold from the perspective of innovative and non-innovative cities. The results show that FDI can significantly promote green innovation in Chinese cities and the promoting effect of FDI on green innovation has nonlinear characteristics, namely, such effects only make sense when absorptive capacity is above the threshold points. Additionally, among the four absorptive capacity factors, the development degrees of innovative cities are ahead of non-innovative cities; in particular, there is a significant difference between them in terms of economic growth. Local governments should develop reasonable policy combination tools according to the absorptive capacity characteristics of different cities to effectively promote the technology spillover effect of FDI and achieve coordinated ecological and economic development.

Keywords: foreign direct investment; technology spillovers; green innovation; absorptive capacity; threshold model (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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