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How Does FDI Affect Cities’ Low-Carbon Innovation? The Moderation Effect of Smart City Development

An Pan, Wenna Zhang and Zhangqi Zhong

Emerging Markets Finance and Trade, 2023, vol. 59, issue 4, 1247-1261

Abstract: Analyzing data from 285 Chinese cities for the period 2005–2016, we examined the impact of foreign direct investment (FDI) on low-carbon innovation, and explored smart city development’s (SCD) moderating role. We found that FDI had a significant positive effect, while SCD played a positive moderating role. Specifically, SCD’s moderating role occurred through three channels: information and communication technology, smart finance, and smart government. Moreover, SCD may maximize innovation advantages and facilitate low-carbon innovation resource flow into more efficient departments. Finally, FDI may improve low-carbon innovation, while SCD may maximize the spillover effect of FDI on low-carbon innovation.

Date: 2023
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DOI: 10.1080/1540496X.2022.2127312

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