IDEAS home Printed from https://ideas.repec.org/a/eee/ingrde/v3y2024i3s2949753124000274.html
   My bibliography  Save this article

Foreign direct investment and green innovation in China: An examination of quantile regression

Author

Listed:
  • Zhou, Hao
  • Zheng, Mingbo

Abstract

This study employs panel data encompassing 31 provinces in China, spanning the period from 2010 to 2020, to investigate the distributional impact of foreign direct investment (FDI) on green innovation (GI). Employing a panel quantile regression model, the research finds the close association between FDI and GI, particularly considering the local GI foundation. Specifically, FDI plays a crucial and influential role in fostering GI within regions characterized by lower levels of GI. However, it does not have a significant impact on promoting GI in regions with higher levels of GI. Further analysis of regional heterogeneity demonstrates that in coastal areas, FDI exhibits a positive and significant impact on GI in provinces with a moderate level of GI. Conversely, in inland areas, FDI can only facilitate GI in provinces with a high level of GI. The research conclusion suggests that the government should enhance the intensity of FDI and implement tailored policies according to the specific characteristics of coastal and inland regions.

Suggested Citation

  • Zhou, Hao & Zheng, Mingbo, 2024. "Foreign direct investment and green innovation in China: An examination of quantile regression," Innovation and Green Development, Elsevier, vol. 3(3).
    • Handle: RePEc:eee:ingrde:v:3:y:2024:i:3:s2949753124000274
    DOI: 10.1016/j.igd.2024.100150
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2949753124000274
    Download Restriction: Open-access
    File URL: https://libkey.io/10.1016/j.igd.2024.100150?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bingtao Qin & Yulu Gai & Liming Ge & Pengbo Sun & Yongwei Yu & Yi Zheng, 2022. "FDI, Technology Spillovers, and Green Innovation: Theoretical Analysis and Evidence from China," Energies, MDPI, vol. 15(20), pages 1-25, October.
    2. Clarence Tolliver & Hidemichi Fujii & Alexander Ryota Keeley & Shunsuke Managi, 2021. "Green Innovation and Finance in Asia," Asian Economic Policy Review, Japan Center for Economic Research, vol. 16(1), pages 67-87, January.
    3. Song, Wenfei & Han, Xianfeng, 2022. "The bilateral effects of foreign direct investment on green innovation efficiency: Evidence from 30 Chinese provinces," Energy, Elsevier, vol. 261(PB).
    4. Kalnbalkite, Antra & Brakovska, Vita & Terjanika, Viktorija & Pubule, Jelena & Blumberga, Dagnija, 2023. "The tango between the academic and business sectors: Use of co-management approach for the development of green innovation," Innovation and Green Development, Elsevier, vol. 2(4).
    5. Zhang, Chuanguo & Zhou, Xiangxue, 2016. "Does foreign direct investment lead to lower CO2 emissions? Evidence from a regional analysis in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 943-951.
    6. Motla, Ritu & Kumar, Ashok & Saxena, Neha & Sana, Shib Sankar, 2023. "Inventory optimization in a green environment with two warehouses," Innovation and Green Development, Elsevier, vol. 2(4).
    7. Yahaya, Abdul-Kadri & Augustine, Liebo, 2023. "Livelihood activities in the Lawra Municipality of Ghana: A blessing or a curse to the riparian vegetation of the Black Volta Basin," Innovation and Green Development, Elsevier, vol. 2(4).
    8. Silva, Luan Carlos Santos & Ten Caten, Carla Schwengber & Gaia, Silvia, 2023. "Conceptual framework of green technology transfer at public university scope Brazilian," Innovation and Green Development, Elsevier, vol. 2(4).
    9. Lifeng Chen & Fuxuan Guo & Lingyan Huang, 2023. "Impact of Foreign Direct Investment on Green Innovation: Evidence from China’s Provincial Panel Data," Sustainability, MDPI, vol. 15(4), pages 1-17, February.
    10. Raihan, Asif, 2023. "The influences of renewable energy, globalization, technological innovations, and forests on emission reduction in Colombia," Innovation and Green Development, Elsevier, vol. 2(4).
    11. Fu, Xiaolan & Emes, David & Hou, Jun, 2021. "Multinational enterprises and structural transformation in emerging and developing countries: A survey of the literature," International Business Review, Elsevier, vol. 30(2).
    12. Chen, Zihan, 2023. "Enhancing the engineering supervision process in China: A solution enabled by integrating hybrid blockchain system," Innovation and Green Development, Elsevier, vol. 2(4).
    13. Jiangfeng Hu & Zhao Wang & Qinghua Huang & Xiaoqin Zhang, 2019. "Environmental Regulation Intensity, Foreign Direct Investment, and Green Technology Spillover—An Empirical Study," Sustainability, MDPI, vol. 11(10), pages 1-15, May.
    14. Raihan, Asif, 2023. "Economy-energy-environment nexus: The role of information and communication technology towards green development in Malaysia," Innovation and Green Development, Elsevier, vol. 2(4).
    15. Roger Koenker, 2017. "Quantile Regression: 40 Years On," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 155-176, September.
    16. Meng, Yue & Wu, Haoyue & Wang, Yunchen & Duan, Yinying, 2022. "International trade diversification, green innovation, and consumption-based carbon emissions: The role of renewable energy for sustainable development in BRICST countries," Renewable Energy, Elsevier, vol. 198(C), pages 1243-1253.
    17. Alexandre Repkine & Dongki Min, 2020. "Foreign-Funded Enterprises and Pollution Halo Hypothesis: A Spatial Econometric Analysis of Thirty Chinese Regions," Sustainability, MDPI, vol. 12(12), pages 1-24, June.
    18. Mushafiq, Muhammad, 2023. "Towards green development: Role of researchers," Innovation and Green Development, Elsevier, vol. 2(4).
    19. Tchapchet Tchouto, Jules-Eric, 2023. "An empirical assessment on the leveraging evidence of economic complexity under environmental kuznets curve hypothesis: A comparative analysis between Nordic and Non-Nordic European countries," Innovation and Green Development, Elsevier, vol. 2(4).
    20. Li, Guanshu & Wang, Yidi & Zhou, Siyang & Lu, Zhonggui & Yin, Tao, 2023. "Effectiveness and challenge of environmental impact assessment in industrial park, a case study in Northeast rust belt China," Innovation and Green Development, Elsevier, vol. 2(4).
    21. Yang, Haochang & Li, Lianshui & Liu, Yaobin, 2022. "The effect of manufacturing intelligence on green innovation performance in China," Technological Forecasting and Social Change, Elsevier, vol. 178(C).
    22. Yolcan, Oguz Ozan, 2023. "World energy outlook and state of renewable energy: 10-Year evaluation," Innovation and Green Development, Elsevier, vol. 2(4).
    23. Awan, Abdul Ghafoor & Yaqoob, Robina, 2023. "Economic value of introducing technology to improve productivity: An ARDL approach," Innovation and Green Development, Elsevier, vol. 2(3).
    24. El Hafdaoui, Hamza & Jelti, Faissal & Khallaayoun, Ahmed & Jamil, Abdelmajid & Ouazzani, Kamar, 2024. "Energy and environmental evaluation of alternative fuel vehicles in Maghreb countries," Innovation and Green Development, Elsevier, vol. 3(1).
    25. Tong Zhao & Haihua Zhou & Jinde Jiang & Wenyan Yan, 2022. "Impact of Green Finance and Environmental Regulations on the Green Innovation Efficiency in China," Sustainability, MDPI, vol. 14(6), pages 1-17, March.
    26. Zhijun Feng & Bo Zeng & Qian Ming, 2018. "Environmental Regulation, Two-Way Foreign Direct Investment, and Green Innovation Efficiency in China’s Manufacturing Industry," IJERPH, MDPI, vol. 15(10), pages 1-22, October.
    27. Roger Koenker, 2017. "Quantile regression 40 years on," CeMMAP working papers 36/17, Institute for Fiscal Studies.
    28. Yi, Jinchao & Hou, Yilin & Zhang, Zach Ziye, 2023. "The impact of foreign direct investment (FDI) on China's manufacturing carbon emissions," Innovation and Green Development, Elsevier, vol. 2(4).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Yutong & Zheng, Mingbo & Shum, Wai Yan, 2024. "On the linkages between digital finance and real economy in China: A cointegration analysis," Innovation and Green Development, Elsevier, vol. 3(1).
    2. Niu, Bingcheng, 2024. "Government environmental protection expenditure and national ESG performance: Global evidence," Innovation and Green Development, Elsevier, vol. 3(2).
    3. Wang, Jun-Zhuo & Feng, Gen-Fu & Yin, Hua-Tang & Chang, Chun-Ping, 2023. "Toward sustainable development: Does the rising oil price stimulate innovation in climate change mitigation technologies?," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 569-583.
    4. Wen, Jun & Zhang, Sen & Chang, Chun-Ping & Anugrah, Donni Fajar & Affandi, Yoga, 2023. "Does climate vulnerability promote green investment under energy supply restriction?," Energy Economics, Elsevier, vol. 124(C).
    5. Ahakwa, Isaac & Tackie, Evelyn Agba & Tackie, Faustina Korkor & Mangudhla, Tinashe & Baig, Jibal & Islam, Sartaj ul & Sarpong, Francis Atta, 2024. "Greening the path to carbon neutrality in the post-COP26 era: Embracing green energy, green innovation, and green human capital," Innovation and Green Development, Elsevier, vol. 3(3).
    6. Jiansheng You & Guohan Ding & Liyuan Zhang, 2022. "Heterogeneous Dynamic Correlation Research among Industrial Structure Distortion, Two-Way FDI and Carbon Emission Intensity in China," Sustainability, MDPI, vol. 14(15), pages 1-23, July.
    7. Chen, Zhao & Cheng, Vivian Xinyi & Liu, Xu, 2024. "Reprint: Hypothesis testing on high dimensional quantile regression," Journal of Econometrics, Elsevier, vol. 239(2).
    8. Chong-Chuo Chang & Oshamah Lin Lin & Oshamah Yu-Cheng Chang & Oshamah Kun-Zhan Hsu, 2023. "Impact of Financial Liberalization on Firm Risk," Advances in Decision Sciences, Asia University, Taiwan, vol. 27(3), pages 14-45, September.
    9. Yuan Zhao & Tian Zhang & Ting Wu & Shujing Xu & Shuwang Yang, 2021. "Effects of Technological Progress from Different Sources on Haze Pollution in China," Sustainability, MDPI, vol. 13(5), pages 1-18, March.
    10. Hunjra, Ahmed Imran & Bouri, Elie & Azam, Muhammad & Azam, Rauf I & Dai, Jiapeng, 2024. "Economic growth and environmental sustainability in developing economies," Research in International Business and Finance, Elsevier, vol. 70(PA).
    11. Wang, Xuqin & Li, Muyi, 2023. "Bootstrapping the transformed goodness-of-fit test on heavy-tailed GARCH models," Computational Statistics & Data Analysis, Elsevier, vol. 184(C).
    12. Sulkhan Chavleishvili & Simone Manganelli, 2024. "Forecasting and stress testing with quantile vector autoregression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 39(1), pages 66-85, January.
    13. Chen, Le-Yu & Lee, Sokbae, 2023. "Sparse quantile regression," Journal of Econometrics, Elsevier, vol. 235(2), pages 2195-2217.
    14. Isabella Tamine Parra Miranda & Juliana Moletta & Bruno Pedroso & Luiz Alberto Pilatti & Claudia Tania Picinin, 2021. "A Review on Green Technology Practices at BRICS Countries: Brazil, Russia, India, China, and South Africa," SAGE Open, , vol. 11(2), pages 21582440211, May.
    15. Xianling Ren & Xinping Yu, 2024. "Hedging performance analysis of energy markets: Evidence from copula quantile regression," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 44(3), pages 432-450, March.
    16. Bing Rong & Chentao Zhang & Shuhao Yang & Tongyi Liu & Chengjun Chu, 2023. "Spatial Characteristics and Influencing Factors of Green Development Progress Level of Private Enterprises in China: Based on Large Collection Surveys," Sustainability, MDPI, vol. 15(15), pages 1-21, July.
    17. Zhenya Zhang & Wanping Yang & Dong Li & Yajuan Wang, 2023. "Impact of Two-Way FDI on China’s Environmental Quality: The Perspective of Environmentally Cleaner Production and End Treatment," IJERPH, MDPI, vol. 20(5), pages 1-31, February.
    18. Wei, Bo & Tan, Kean Ming & He, Xuming, 2024. "Estimation of complier expected shortfall treatment effects with a binary instrumental variable," Journal of Econometrics, Elsevier, vol. 238(2).
    19. Shi, Zheng, 2023. "The impact of regional ICT development on job quality of the employee in China," Telecommunications Policy, Elsevier, vol. 47(6).
    20. Lamarche, Carlos & Shi, Xuan & Young, Derek S., 2024. "Conditional Quantile Functions for Zero-Inflated Longitudinal Count Data," Econometrics and Statistics, Elsevier, vol. 31(C), pages 49-65.

    More about this item

    Keywords

    Foreign direct investment; Quantile regression; Green innovation;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ingrde:v:3:y:2024:i:3:s2949753124000274. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/innovation-and-green-development .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.