Carbon emission efficiency and foreign direct investment: the role of green financial development Online publication date: Wed, 31-Jul-2024
by Xin Guo; Jiang Wang
International Journal of Internet Manufacturing and Services (IJIMS), Vol. 10, No. 2/3, 2024
Abstract: Prevailing research suggests foreign direct investment (FDI) significantly impacts carbon emission efficiency (CEE) of the host country. However, the contribution of FDI may depend on the level of green financial development in the host country. This study examines the role of green financial development in the relationship between FDI and CEE. Based on panel data from 30 provinces in China from 2005 to 2019, we construct the system generalised method of moments (GMM) model and a dynamic threshold effect model to investigate how green financial development influences the impact of FDI on the CEE of the host country. The findings suggested that green financial development plays a moderating role in the impact of FDI on CEE. But only when it reaches a certain level can FDI significantly promote CEE. The empirical analysis suggests that policymakers should build a multilevel green financial system to allocate financial resources and maximise the spillover effects of FDI.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Internet Manufacturing and Services (IJIMS):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook