As an important way for China to integrate into the international circulation, foreign direct investment (FDI) can not only increase China's capital accumulation but also directly affect inclusive green growth by promoting the diffusion and transfer of green technologies and activating the domestic market. Based on China's provincial panel data from 2007 to 2019, this paper discusses the following issues: first, Global Malmquist-Luenberger (GML) productivity index is used to measure and analyze the current situation of inclusive green growth in 30 provinces of China; second, we set a fixed effect panel model to test the relationship between FDI and inclusive green growth in China. Third, based on PVAR (panel vector autoregressive) model, the dynamic impacts of FDI and new urbanization on inclusive green growth are tested. Finally, a regression model with the new urbanization level as the threshold variable is constructed to test the threshold effect of FDI on China's green inclusive growth. Accordingly, each region needs to formulate FDI introduction policies according to the local new urbanization level, so as to give full play to the positive role of FDI in inclusive green growth.
Keywords: Environmental sustainability; Foreign direct investment; Inclusive green growth; New-type urbanization.
© 2022. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.