Does OFDI Promote Green Growth of China's Industrial Economy?—from the Perspective of Provincial Panel Data

Abstract

Based on the theory of OFDI and the extended Cobb-Douglas production function, this paper uses provincial panel data to study the mechanism and promoting effect of OFDI on the green growth of local industrial economy. The research finds that although provincial OFDI can indirectly and directly promote the green growth of local industrial economy through various investment effects, its comprehensive promotion effect is negative in the current period; OFDI can strengthen the green growth of local industrial economy through environmental regulation, while OFDI can restrain the green growth of local industrial economy through consumption level of Residents. When environmental protection regulations and residents' consumption level are added, OFDI has a significant promoting effect on the green growth of local economy in industry. Finally, on the basis of the conclusions of the study, the corresponding policy recommendations are put forward.