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Can two-way FDI synergy promote regional high-quality green development under environmental decentralization?

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Abstract

China’s high-level opening-up benefits its economic growth. The significance of supporting regional high-quality green development by enhancing foreign capital use and outbound foreign investment has grown in recent years. This paper develops a regional development assessment system and calculates the index of each region by using entropy method. Then, it introduces a capacity coupling system model to measure the two-way FDI synergy. Finally, it employs the spatial model that was developed to assess the synergy’s influence on regional green development under the environmental decentralization. According to the findings, the synergy can improve the local development. However, it inhibits the improvement of economic development quality in neighboring regions. In addition, environmental decentralization negatively moderates the synergy’s on the local development. Therefore, the central government needs to implement targeted economic policies to shorten the development gap between regions, fully use the positive role of environmental decentralization and improve the local development.

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Funding

This research was funded by National Natural Science Foundation of China (72204099, 72004082), Humanities and Social Sciences Fund of Ministry of Education of China (21YJC790021), and the Philosophy and Social Sciences Excellent Innovation Team Construction Foundation of Jiangsu province (SJSZ2020-20).

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Authors and Affiliations

  1. School of Finance and Economics, Jiangsu University, Jingkou District, Zhenjiang, Jiangsu, 212013, China

    Jijian Zhang, Guang Yang, Xuhui Ding & Luo Yichan

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  1. Jijian Zhang
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  2. Guang Yang
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  3. Xuhui Ding
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  4. Luo Yichan
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Contributions

JZ was involved in methodology, writing original draft, and funding acquisition. GY contributed to conceptualization, validation, writing—review and editing, and funding acquisition. XD was involved in data collection, data curation, and funding acquisition. LY contributed to data collection and data curation.

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Correspondence to Jijian Zhang, Guang Yang or Xuhui Ding.

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Zhang, J., Yang, G., Ding, X. et al. Can two-way FDI synergy promote regional high-quality green development under environmental decentralization?. Environ Dev Sustain (2023). https://doi.org/10.1007/s10668-023-04120-0

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