Threshold Effect of Foreign Direct Investment and Carbon Emissions Performance From the Perspective of Marketization Level: Implications for the Green Economy

Hao Hu; Haiyan Wang; Shuang Zhao; Xun Xi; Lan Li; Xiaojiao Shi; Yingzi Lu; Jianping Yu; Xiaoxiao Liu; Jun Li; Haiyan Zhou

doi:10.3389/fpsyg.2021.708749

Threshold Effect of Foreign Direct Investment and Carbon Emissions Performance From the Perspective of Marketization Level: Implications for the Green Economy

Front Psychol. 2021 Sep 27:12:708749. doi: 10.3389/fpsyg.2021.708749. eCollection 2021.

Authors

Hao Hu¹, Haiyan Wang², Shuang Zhao³, Xun Xi⁴, Lan Li^{5

6}, Xiaojiao Shi⁴, Yingzi Lu², Jianping Yu⁷, Xiaoxiao Liu¹, Jun Li⁸, Haiyan Zhou⁹

Affiliations

¹ School of Economics, Shanghai University, Shanghai, China.
² School of Economics, East China Normal University, Shanghai, China.
³ School of Management, Jiangsu University, Zhenjiang, China.
⁴ Institute of International Business, Zhejiang Gongshang University, Hangzhou, China.
⁵ School of Business Administration, Henan University of Economics and Law, Zhengzhou, China.
⁶ Research Center of Henan Economy, Henan University of Economics and Law, Zhengzhou, China.
⁷ School of Business Administration, Jimei University, Xiamen, China.
⁸ School of Business Administration, Wenzhou Polytechnic, Wenzhou, China.
⁹ China Center for Economic Research, East China Normal University, Shanghai, China.

Abstract

Exploring the path and mechanism of marketization level in the effect of foreign direct investment (FDI) on carbon emission performance will help to maximize the stimulation effect of foreign investment on green and low-carbon development. This study used the panel data of 11 provinces and cities in the Yangtze River Economic Belt from 2008 to 2016. A panel threshold model is constructed to explore the non-linear relationship between FDI and carbon emissions performance from the perspective of marketization level. The main conclusions are as follows: First, from the perspective of marketization level, a significant double threshold effect exists between foreign participation and carbon emission intensity, with threshold values of 4.4701 and 9.2516 respectively. Second, as the marketization level increases, the technology spillover effect of FDI increases, and the stimulation effect of foreign participation on carbon intensity decreases significantly, but it does not inhibit carbon intensity, indicating that the overall benefits brought by FDI technology spillovers are still insufficient to offset pollution caused by foreign investment. Third, the eastern region of the Yangtze River Economic Belt has crossed the second threshold. In the central and western regions, the marketization process is relatively slow except for Chongqing, and the regions are still firmly stuck between the first and second thresholds. In response to the conclusions of the empirical research, relevant policy suggestions are put forward from three dimensions, namely, the strategy of introducing foreign investment, construction of the marketization system, and environmental regulation, to achieve low-carbon and green development in the Yangtze River Economic Belt.

Keywords: Yangtze River Economic Belt; carbon intensity; foreign direct investment; marketization level; threshold effect.