Heterogeneous Dynamic Correlation Research among Industrial Structure Distortion, Two-Way FDI and Carbon Emission Intensity in China

Jiansheng You, Guohan Ding and Liyuan Zhang
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Jiansheng You: School of Management, Shandong University of Technology, Zibo 255000, China
Guohan Ding: School of Economics, Shandong University of Technology (SDUT), Zibo 255000, China
Liyuan Zhang: School of Business and Creative Industries, University of the West of Scotland, Paisley PA1 2BE, UK

Sustainability, 2022, vol. 14, issue 15, 1-23

Abstract: The increase in carbon emissions year by year poses a severe challenge to the high-quality development and sustainability of China’s economy. How to reduce the intensity of carbon emissions has become a prominent issue to promote green growth. Based on the provincial panel data from 2011 to 2020, this paper uses Exploratory Spatial Data Analysis (ESDA), the spatial econometric model and intermediary effect test as analysis methods. The following results are drawn. Firstly, China’s industrial structure distortion index shows a downward trend. The industrial structure distortion index is the highest in the west of China, followed by the middle of China and is the lowest in the east of China. Secondly, the distortion of the industrial structure will not only lead to the increase in local carbon emission intensity but also produce reverse spillover to adjacent areas. Thirdly, the results of intermediary effect analysis show that industrial structure distortion can affect the transmission mechanism of carbon emission intensity by affecting two-way FDI. This paper has a profound practical significance for promoting the process of industrial upgrading by insisting on developing foreign trade to achieve carbon emission reduction. The main innovation of this paper is to put forward the concept of industrial structure distortion and bring it into a unified research framework with two-way FDI and carbon emission intensity.

Keywords: two-way FDI; structural distortion; ecological civilization construction; spatial econometrics; carbon emission intensity (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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