IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i9p7341-d1135430.html
   My bibliography  Save this article

Dynamic Evolutionary Analysis of the Impact of Outward Foreign Direct Investment on Green Innovation Heterogeneity—From the Perspective of Binary Innovation

Author

Listed:
  • Luhao Liu

    (The School of International Trade and Economics, Shandong University of Finance and Economics, Jinan 250014, China)

  • Honglin Zhou

    (The School of International Trade and Economics, Shandong University of Finance and Economics, Jinan 250014, China)

  • Jiaping Xie

    (Business College, Shanghai University of Finance and Economics, Shanghai 200433, China)

Abstract

In the current era of increasingly frequent international exchanges and countries’ increasing emphasis on green development, exploring the complex relationship between outward foreign direct investment (OFDI) and green innovation has become an important research topic. Taking the binary innovation perspective as an entry point, this paper is devoted to exploring the heterogeneous impact and dynamic evolution of OFDI on green innovation since China’s accession to the WTO. The purpose is to form a more comprehensive and specific understanding of how OFDI affects green innovation. By sorting out the characteristics of economic development at the early stage of China’s WTO accession and implementation of the “going out” strategy, the period of counter-trend growth of OFDI after the financial crisis, and the “new normal” period of China’s transformation and development, this paper analyzes in detail the impact of OFDI on green innovation and green binary innovation in each stage. According to the study, the coefficients of the effects of OFDI on green innovation in the three stages are 0.214 (fully significant at the 1% level), −0.057 (insignificant), and 0.137 (significant at the 5% level), showing an overall effect of promoting–insignificant–promoting; In addition, the fact that the development orientation of OFDI is different at different stages leads to significant heterogeneity in its impact on green innovation and green binary innovation. The coefficients of OFDI on green exploratory innovation at the three stages are 0.064 (insignificant), −0.107 (significant at 10% level), and 0.099 (significant at 5% level), and the coefficients of OFDI on green exploitative innovation are 0.258 (fully significant at 1% level), −0.036 (insignificant) and 0.142 (significant at 5% level), respectively. The results reveal that OFDI on green binary innovation shifts from focusing on promoting green exploitative innovation to taking green binary innovation into account, and this heterogeneous performance effect matches the development characteristics of each stage. The results of the study show more clearly the association between OFDI and green innovation in China and provide new references for subsequent academic research and management practice.

Suggested Citation

  • Luhao Liu & Honglin Zhou & Jiaping Xie, 2023. "Dynamic Evolutionary Analysis of the Impact of Outward Foreign Direct Investment on Green Innovation Heterogeneity—From the Perspective of Binary Innovation," Sustainability, MDPI, vol. 15(9), pages 1-15, April.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:9:p:7341-:d:1135430
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/9/7341/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/9/7341/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Xinpeng Xing & Jianhua Wang & Lulu Tou, 2019. "The Relationship between Green Organization Identity and Corporate Environmental Performance: The Mediating Role of Sustainability Exploration and Exploitation Innovation," IJERPH, MDPI, vol. 16(6), pages 1-16, March.
    2. Mouri, Nacef & Sarkar, M.B. & Frye, Melissa, 2012. "Alliance portfolios and shareholder value in post-IPO firms: The moderating roles of portfolio structure and firm-level uncertainty," Journal of Business Venturing, Elsevier, vol. 27(3), pages 355-371.
    3. 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.
    4. Li Ji & Jiaqi Mou, 2023. "The Moderating Role of Host Investment Environments on the Relationship between Enterprises’ OFDI and Green Innovation: Evidence from China," Sustainability, MDPI, vol. 15(2), pages 1-25, January.
    5. Irfan, Muhammad & Razzaq, Asif & Sharif, Arshian & Yang, Xiaodong, 2022. "Influence mechanism between green finance and green innovation: Exploring regional policy intervention effects in China," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    6. Zhongju Liao & Chen Weng & Chen Shen, 2020. "Can public surveillance promote corporate environmental innovation? The mediating role of environmental law enforcement," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(6), pages 1519-1527, November.
    7. Yuegang Song & Feng Hao & Xiazhen Hao & Giray Gozgor, 2021. "Economic Policy Uncertainty, Outward Foreign Direct Investments, and Green Total Factor Productivity: Evidence from Firm-Level Data in China," Sustainability, MDPI, vol. 13(4), pages 1-16, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tao Wei & Qinlin Zhu & Wenlan Liu, 2024. "The Effect of Market-Based Environmental Regulations on Green Technology Innovation—The Regulatory Effect Based on Corporate Social Responsibility," Sustainability, MDPI, vol. 16(11), pages 1-22, June.
    2. Jianfei He & Rong Huang & Jiayu Ding & Yuting Liu & Rongxi Zhou, 2024. "The Impact of Capital Market Opening on Enterprise Green Technology Innovation: Insights from the Shanghai–Hong Kong Stock Connect," Sustainability, MDPI, vol. 16(6), pages 1-30, March.
    3. Guangyuan Xing & Hao Dong, 2023. "Outward Foreign Direct Investment and Industrial Structure Upgrading: The Mediating Role of Reverse Green Technology Innovation, the Moderating Role of R&D Investment and Environmental Regulation," Sustainability, MDPI, vol. 15(11), pages 1-15, June.

    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. Xu, Aiting & Zhu, Yuhan & Wang, Wenpu, 2023. "Micro green technology innovation effects of green finance pilot policy—From the perspectives of action points and green value," Journal of Business Research, Elsevier, vol. 159(C).
    2. Wei Wang & Xue-Zhou Zhao & Feng-Wen Chen & Chia-Huei Wu & Sangbing Tsai & Jiangtao Wang, 2019. "The Effect of Corporate Social Responsibility and Public Attention on Innovation Performance: Evidence from High-polluting Industries," IJERPH, MDPI, vol. 16(20), pages 1-20, October.
    3. Morricone, Serena & Munari, Federico & Oriani, Raffaele & de Rassenfosse, Gaetan, 2017. "Commercialization Strategy and IPO Underpricing," Research Policy, Elsevier, vol. 46(6), pages 1133-1141.
    4. Qadri, Hussain Mohi ud Din & Ali, Hassnian & Abideen, Zain ul & Jafar, Ahmad, 2024. "Mapping the Evolution of Green Finance Research and Development in Emerging Green Economies," Resources Policy, Elsevier, vol. 91(C).
    5. Ying Zhang & Yingli Huang, 2023. "Killing Two Birds with One Stone or Missing One of Them? The Synergistic Governance Effect of China’s Carbon Emissions Trading Scheme on Pollution Control and Carbon Emission Reduction," Sustainability, MDPI, vol. 15(13), pages 1-25, June.
    6. Yao Zhao & Xuena Kong & Mahmood Ahmad & Zahoor Ahmed, 2023. "Digital Economy, Industrial Structure, and Environmental Quality: Assessing the Roles of Educational Investment, Green Innovation, and Economic Globalization," Sustainability, MDPI, vol. 15(3), pages 1-24, January.
    7. 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.
    8. Razzaq, Asif & Sharif, Arshian & Ozturk, Ilhan & Skare, Marinko, 2022. "Inclusive infrastructure development, green innovation, and sustainable resource management: Evidence from China’s trade-adjusted material footprints," Resources Policy, Elsevier, vol. 79(C).
    9. Jinqian Deng & Na Zhang & Fayyaz Ahmad & Muhammad Umar Draz, 2019. "Local Government Competition, Environmental Regulation Intensity and Regional Innovation Performance: An Empirical Investigation of Chinese Provinces," IJERPH, MDPI, vol. 16(12), pages 1-17, June.
    10. Xu, Yong & Zhao, Xin & Wang, Jian & Xie, Peijun, 2023. "Clarifying the dispute of corporate social responsibility: Evidence from green technological innovation," Technology in Society, Elsevier, vol. 75(C).
    11. Wei, Shuxin & Wei, Wenshan & Umut, Alican, 2023. "Do renewable energy consumption, technological innovation, and international integration enhance environmental sustainability in Brazil?," Renewable Energy, Elsevier, vol. 202(C), pages 172-183.
    12. Lee, Chien-Chiang & Wang, Fuhao & Chang, Yu-Fang, 2023. "Towards net-zero emissions: Can green bond policy promote green innovation and green space?," Energy Economics, Elsevier, vol. 121(C).
    13. Cui, Xin & Wang, Chunfeng & Sensoy, Ahmet & Liao, Jing & Xie, Xiaochen, 2023. "Economic policy uncertainty and green innovation: Evidence from China," Economic Modelling, Elsevier, vol. 118(C).
    14. Li, Xin & Li, Zheng & Su, Chi-Wei & Umar, Muhammad & Shao, Xuefeng, 2022. "Exploring the asymmetric impact of economic policy uncertainty on China's carbon emissions trading market price: Do different types of uncertainty matter?," Technological Forecasting and Social Change, Elsevier, vol. 178(C).
    15. Zhou, Yuanxiang & Adebayo, Tomiwa Sunday & Yin, Weichuan & Abbas, Shujaat, 2023. "The co-movements among renewable energy, total environmental tax, and ecological footprint in the United Kingdom: Evidence from wavelet local multiple correlation analysis," Energy Economics, Elsevier, vol. 126(C).
    16. Xiaoxue Liu & Fuzhen Cao & Shuangshuang Fan, 2022. "Does Human Capital Matter for China’s Green Growth?—Examination Based on Econometric Model and Machine Learning Methods," IJERPH, MDPI, vol. 19(18), pages 1-27, September.
    17. Dong, Xiaojun & Yu, Xiaowen & Shi, Tao & Qiao, Dan, 2024. "Nexus between carbon emissions and local debt risk: Evidence from China's prefecture-level cities," International Review of Financial Analysis, Elsevier, vol. 93(C).
    18. Ruiyu Hu & Zemenghong Bao & Zhisen Lin & Kun Lv, 2024. "The Innovative Construction of Provinces, Regional Artificial Intelligence Development, and the Resilience of Regional Innovation Ecosystems: Quasi-Natural Experiments Based on Spatial Difference-in-D," Sustainability, MDPI, vol. 16(18), pages 1-37, September.
    19. Songping Zhu & Gaofeng Yu, 2022. "The Impact of Economic Policy Uncertainty on Industrial Output: The Regulatory Role of Technological Progress," Sustainability, MDPI, vol. 14(16), pages 1-18, August.
    20. Zhou, Junbi & Wang, Mingyue, 2023. "The role of government-industry-academia partnership in business incubation: Evidence from new R&D institutions in China," Technology in Society, Elsevier, vol. 72(C).

    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:gam:jsusta:v:15:y:2023:i:9:p:7341-:d:1135430. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.