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Journal ArticleDOI: 10.1007/S11356-021-12930-W

The impact of outward foreign direct investment on green innovation: the threshold effect of environmental regulation

04 Mar 2021-Environmental Science and Pollution Research (Springer Berlin Heidelberg)-Vol. 28, Iss: 26, pp 34868-34884
Abstract: Outward foreign direct investment (OFDI) in an open economy has gradually become an important source of green innovation (GI). With the rapid development of China’s OFDI, this research studies the impact of OFDI on the country’s GI, employing panel data of 30 provinces from 2006 to 2017. We first use the Super-SBM model to measure GI performance and then test the impact of OFDI on GI with the system GMM model. Evidence finds that the negative impact of OFDI on GI is not significant on the whole, but the results of regional regression show that impact of OFDI on GI exhibits obvious regional differences. We then utilize the dynamic threshold panel model to determine the non-linear relationship between OFDI and GI through the perspective of environmental regulation in order to avoid the bias caused by ignoring the impact of institutional factors and time dynamic change. After dividing environmental regulations into command control environmental regulation and market incentive environmental regulation, the research results show that the double threshold effects of both environmental regulations are significant. Command control environmental regulation does not play a role in promoting the effect of OFDI on GI. When the intensity of market incentive environmental regulation is low, OFDI negatively affects GI. Moreover, only when the market incentive regulation shows high intensity can OFDI significantly promote GI. With the continuous growth of China’s OFDI, it is therefore necessary to determine the appropriate environmental regulation to improve the reverse spillover effect of OFDI enterprises on the country’s GI.

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Journal ArticleDOI: 10.1016/J.ENECO.2021.105237
01 Jun 2021-Energy Economics
Abstract: This research combines the DEA-SBM (Data Envelopment Analysis-Super Slack Based Measure) model and GML (Global Malmquist-Luenberger) index to measure the efficiency of green technology innovation in 30 provinces of China from 2003 to 2017. It uses financial structure, financial scale, and financial efficiency to describe the degree of financial development and examines the relationship between financial development and green technology innovation. We further analyze the moderating effect of environmental regulation and the mediating effect of innovation output, first offering evidence that there are differences in the impact of financial structure, financial scale, and financial efficiency on green technology innovation. Second, financial structure is conducive to the development of green technology innovation, while financial scale and financial efficiency have a negative impact on green technology innovation. Third, environmental regulation plays a positive role as a moderating effect between financial structure and green technology innovation, but a negative role as a moderating effect between financial efficiency and green technology innovation. Fourth, innovation output has a mediating role between financial development and green technology innovation. Finally, there is an integrated boundary role that environmental regulation has between financial development, innovation output, and green technology innovation.

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12 Citations


Journal ArticleDOI: 10.1016/J.IREF.2021.09.008
En-Ze Wang1, Chien-Chiang Lee2Institutions (2)
Abstract: Applying balanced panel data comprised of 27 provinces spanning the period from 2000 to 2015, this research estimates a production function accounting for heterogeneity by using the finite mixture model to provide, for the first time, a comprehensive assessment of the interrelationships among environmental regulation, clean energy consumption, and economic growth. It is noteworthy here that we calculate clean energy consumption at the level of China's provinces to avoid measurement error. The main findings can be summarized as follows. First, environmental regulation matters for the nexus between clean energy consumption and economic growth. Specifically, regulation enhances the positive effect of clean energy consumption on economic growth, thus prompting provinces to transform onto a clean growth path. Second, there exists heterogenous nexuses between clean energy consumption and economic growth in different growth paths, as clean energy consumption not only facilitates growth in paths B and C, but also restrains growth in path A. Third, ignoring measurement error of clean energy consumption and adopting a misspecification of the production function will bias estimation results when analyzing the impact of clean energy consumption on economic growth. In comparison to applying clean energy consumption data and the Solow decomposition framework accounting for heterogeneity, employing clean energy production data and using the traditional Solow decomposition framework will both underestimate the significance of clean energy consumption's impact on economic growth.

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Topics: Consumption (economics) (55%)

5 Citations


Open accessJournal ArticleDOI: 10.3390/IJERPH18157774
Le Yang1, Jiahao Zhang2, Yufeng Zhang3Institutions (3)
Abstract: China and other emerging market countries have suffered from the problem of environmental pollution while developing rapidly in the past few decades. In recent years, many countries have introduced strict environmental regulations in order to achieve sustainable development. This paper discusses the relationship between environmental regulations and corporate green innovation from the perspective of regional leaders’ promotion pressure. The empirical results show that direct policy regulation within the region stimulates green innovation on the part of enterprises, and the promotion pressure of city leaders has a further positive moderating effect on the positive correlation between environmental regulations and enterprises’ green innovation. The conclusion of the study proves that a strict environmental policy can promote the effectiveness of an environmental performance appraisal system in the sustainable development plans of cities and enterprises. This paper not only reveals the influence path of official promotion pressure on the sustainable development of enterprises in the administrative area from the micro perspective but also sheds some light that may improve government governance and promote the transformation of enterprises.

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Topics: Environmental pollution (60%), Sustainable development (57%), Corporate governance (54%) ... read more

4 Citations


Journal ArticleDOI: 10.1016/J.ENECO.2021.105576
Chang Tang1, Yuanyuan Xu1, Yu Hao, Haitao Wu2  +1 moreInstitutions (3)
01 Nov 2021-Energy Economics
Abstract: Telecommunications infrastructure can lead to network spillovers and has the advantages of breaking spatial barriers, reducing transaction costs, and fostering business model innovation. In this way, it can promote the proliferation and progress of green technology and may impact green technology innovation. This paper studies the impact of telecommunications infrastructure on green technology innovation, identifies its mechanism, and analyzes the scale, structure, and heterogeneity of its effects. This research treats the Broadband China pilot policy as a quasinatural experiment in telecommunications infrastructure and uses firm- and city-level data from 2008 to 2018 to conduct a difference-in-difference (DID) model analysis. The study finds that telecommunications infrastructure promotes green technology innovation. However, telecommunications infrastructure has a more significant impact in promoting low- rather than high-quality green technology innovation. Additionally, the results of the mediating effect analysis show that telecommunications infrastructure stimulates corporate green technology innovation by improving the level of informatization, increasing media attention and improving corporate governance. It is noteworthy that, when heterogeneity in enterprise ownership, financing constraints, and technology level is considered, non-state-owned enterprises and enterprises with low financing constraints and a high technology level are found to be more clearly affected by telecommunications infrastructure.

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Topics: Informatization (52%)

2 Citations


Journal ArticleDOI: 10.1016/J.ENECO.2021.105476
01 Oct 2021-Energy Economics
Abstract: The purpose of this research is to show the regional gap, spatial pattern, and the trend evolution of China's green finance development. Based on provincial data from 2010 to 2019, we construct a policy- and market-oriented green financial development index system with the help of a local green financial development index and assessment report in 2019 and then calculate the green financial development index by using time and space ranges via the entry-weight method. We further employ Dagum's Gini coefficient decomposition method, Kernel density estimation, Markov chain, and spatial Markov chain, presenting results that first show that the overall development index of green finance in China is on the rise, but its overall level is not high. Second, the overall regional gap is on the decline, and the inter-regional gap is the main source of the development gap of green finance in the country. Third, the development of green finance shows a polarization trend, characterized by a ladder distribution of initially east China, central China, west China, and then northeast China. Finally, the development of green finance in China shows a club convergence phenomenon. This revelation of the evolution trend and source of the development gap of China's green finance provide a basis for narrowing this gap and for promoting the coordinated development of green finance in China's economic regions.

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Topics: Index (economics) (50%)

2 Citations


References
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19 results found


Open accessReport SeriesDOI: 10.1920/WP.IFS.1995.9517
Richard Blundell1, Stephen Bond2Institutions (2)
Abstract: Estimation of the dynamic error components model is considered using two alternative linear estimators that are designed to improve the properties of the standard first-differenced GMM estimator. Both estimators require restrictions on the initial conditions process. Asymptotic efficiency comparisons and Monte Carlo simulations for the simple AR(1) model demonstrate the dramatic improvement in performance of the proposed estimators compared to the usual first-differenced GMM estimator, and compared to non-linear GMM. The importance of these results is illustrated in an application to the estimation of a labour demand model using company panel data.

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17,468 Citations


Open accessJournal ArticleDOI: 10.1016/0014-2921(94)00100-E
Abstract: A model is presented based on recent theories of economic growth that treat commercially oriented innovation efforts as a major engine of technological progress. We study the extent to which a country’s total factor productivity depends not only on domestic R&D capital but also on foreign R&D capital. Our estimates indicate that foreign R&D has beneficial effects on domestic productivity, and that these are stronger the more open an economy is to foreign trade. Moreover, the estimated rates of return on R&D are very high, both in terms of domestic output and international spillovers.

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Topics: Total factor productivity (70%), Productivity (63%), Capital (economics) (56%) ... read more

3,203 Citations


Open accessJournal ArticleDOI: 10.1016/S0304-4076(99)00025-1
Bruce E. Hansen1Institutions (1)
Abstract: Threshold regression methods are developed for non-dynamic panels with individual-specific fixed effects. Least squares estimation of the threshold and regression slopes is proposed using fixed-effects transformations. A non-standard asymptotic theory of inference is developed which allows construction of confidence intervals and testing of hypotheses. The methods are applied to a 15-year sample of 565 US firms to test whether financial constraints affect investment decisions.

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Topics: Statistical hypothesis testing (54%), Regression analysis (54%), Inference (53%) ... read more

2,160 Citations


Open accessJournal ArticleDOI: 10.1016/S0377-2217(01)00324-1
Kaoru Tone1Institutions (1)
Abstract: In most models of Data Envelopment Analysis (DEA), the best performers have the full efficient status denoted by unity (or 100%), and, from experience, we know that usually plural Decision Making Units (DMUs) have this “efficient status”. To discriminate between these efficient DMUs is an interesting subject. This paper addresses this “super-efficiency” issue by using the slacks-based measure (SBM) of efficiency, which the author proposed in his previous paper [European Journal of Operational Research 130 (2001) 498]. The method differs from the traditional one based on the radial measure, e.g. Andersen and Petersen model, in that the former deals directly with slacks in inputs/outputs, while the latter does not take account of the existence of slacks. We will demonstrate the rationality of our approach by comparing it with the radial measure of super-efficiency. The proposed method will be particularly useful when the number of DMUs are small compared with the number of criteria employed for evaluation.

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2,133 Citations


Journal ArticleDOI: 10.2307/2109564
Abstract: This article examines the effect of relative technological capabilities on Japanese direct investment into the United States by looking simultaneously at industry conditions in the two markets. A negative binomial regression model is specified to estimate the effects of R & D capability and industry structure on a count measure of Japanese entries across 297 industries. The results indicate that Japanese direct investment in the United States is drawn to industries intensive in R & D expenditures summed across both countries; voluntary restraints on Japanese exports encourage direct investment. When the entries are disaggregated by mode (e.g., new plant or acquisition), there is a significant indication that joint ventures are used for the sourcing and sharing of U.S. technological capabilities. Copyright 1991 by MIT Press.

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788 Citations