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Assessing the impact of reverse technology spillover of outward foreign direct investment on energy efficiency

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Abstract

The existing literatures mainly focus on the impact of foreign direct investment or technological progress on energy efficiency. However, the research on the impact of reverse technology spillover of outward foreign direct investment (OFDI) on energy efficiency is relatively lacking and not in-depth. Therefore, this study assesses the impact of reverse technology spillover of OFDI on total factor energy efficiency, employing the panel data of provincial and industrial levels in China from 2004 to 2017. First, the impact of reverse technology spillover of OFDI on total factor energy efficiency is evaluated by extended L–P model. The results indicate that reverse technology spillover of OFDI has positive impact on total factor energy efficiency on the whole, but this impact exhibits obvious differences at both regional and industrial levels. Then the threshold regression model is utilized to examine the nonlinear relationship between reverse technology spillover of OFDI and total factor energy efficiency. The results show that, at the regional level, there is a single threshold effect of the OFDI scale and technology development level. Moreover, the double threshold effect of the OFDI scale and the single threshold effect of the technology development level are significant at industrial level.

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Notes

  1. Provincial regions include Liaoning, Beijing, Tianjin, Shanghai, Hebei, Shandong, Jiangsu, Zhejiang, Fujian, Guangdong, Guangxi, Hainan (Eastern regions, Number: 12); Heilongjiang, Jilin, Shanxi, Inner Mongolia, Anhui, Henan, Hubei, Hunan, Jiangxi (Central regions, Number: 9); Sichuan & Chongqing, Yunnan, Guizhou, Shaanxi, Gansu, Qinghai, Ningxia, Xinjiang (Western regions, Number: 8). Industries include agriculture, forestry, animal husbandry and fishery (A) (Primary industry, Number: 1), Mining (B), manufacturing (C), production and supply of electricity, heat, gas and water (D), construction (E) (Secondary industries, Number: 4) and wholesale and retail (F), transportation, storage and postal services (G) (Tertiary industries, Number: 2).

  2. The 29 provincial regions selected in mainland of China do not include Tibet for data unavailability, and Chongqing is combined with Sichuan as one region for study.

  3. The selected host countries include Armenia, Austria, Azerbaijan, Belgium, Burkina Faso, Bulgaria, Brazil, Canada, Chile, Colombia, Cyprus, Germany, Denmark, Ecuador, Estonia, Finland, France, UK, Georgia, Greece, Guatemala, Hungary, India, Ireland, Iraq, Iceland, Israel, Italy, Japan, Kyrgyzstan, Kuwait, Lithuania, Luxembourg, Latvia, Moldova, Madagascar, Mexico, Malta, Mongolia, Malaysia, Netherlands, New Zealand, Peru, Poland, Portugal, Paraguay, Romania, Russian Federation, Saudi Arabia, Singapore, El Salvador, Serbia, Slovenia, Sweden, Thailand, Tajikistan, Trinidad and Tobago, Tunisia, Turkey, Uganda, Ukraine, Uruguay, USA, and South Africa, containing 64 countries.

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Acknowledgements

This work was supported by National Natural Science Foundation of China under grant 71974038, Humanities and Social Science Fund of Ministry of Education of China under grant 21YJAZH048, Guangdong Basic and Applied Basic Research Foundation of China under grant 2019A1515011749, Guangdong Planning Project of Philosophy and Social Science of China under grant GD18CGL10.

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  1. School of Management, Guangdong University of Technology, Guangzhou, 510520, China

    Yong He, Hongyan Zuo & Nuo Liao

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  1. Yong He
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Correspondence to Nuo Liao.

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He, Y., Zuo, H. & Liao, N. Assessing the impact of reverse technology spillover of outward foreign direct investment on energy efficiency. Environ Dev Sustain 25, 4385–4410 (2023). https://doi.org/10.1007/s10668-022-02204-x

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