The influence of foreign direct investment and trade opening on green total factor productivity in the equipment manufacturing industry

Figures & data

Table 1. Measurement results for the GTFP and its decomposition items in the equipment manufacturing industry from 2003 to 2015.

Year	Metal products industry					General equipment industry					Special equipment industry					Transportation equipment manufacturing industry
	GTFP	Effe		Tech		GTFP	Effe		Tech		GTFP	Effe		Tech		GTFP	Effe		Tech
2004	0.90	0.92		0.99		0.96	1.09		0.88		0.99	1.04		0.95		1.06	1.02		1.04
2005	0.98	1.10		0.89		1.08	1.04		1.04		1.01	1.12		0.90		1.11	1.07		1.05
2006	0.95	0.96		0.99		1.14	1.10		1.04		0.98	1.07		0.91		1.16	1.06		1.09
2007	1.14	1.08		1.05		1.17	1.12		1.04		1.13	1.10		1.03		1.21	2.26		0.53
2008	1.07	0.99		1.08		1.14	1.05		1.09		1.15	1.07		1.07		1.07	1.00		1.07
2009	1.05	0.99		1.07		1.06	1.02		1.05		1.11	1.02		1.08		1.17	1.00		1.17
2010	1.11	1.07		1.04		1.15	1.06		1.08		1.15	1.08		1.06		1.14	1.00		1.14
2011	1.24	1.03		1.21		1.22	1.10		1.11		1.25	1.12		1.12		1.12	1.00		1.12
2012	1.13	1.14		0.99		1.17	1.23		0.95		1.19	1.45		0.82		1.13	1.00		1.13
2013	0.98	0.85		1.15		1.08	0.85		1.27		1.02	0.69		1.47		1.42	1.00		1.42
2014	1.09	0.96		1.13		1.15	1.00		1.15		1.09	0.99		1.10		1.23	1.00		1.23
2015	1.05	0.69		1.52		1.08	0.79		1.37		1.15	0.80		1.43		1.27	1.00		1.27
Average	1.06	0.98		1.09		1.12	1.04		1.09		1.10	1.05		1.08		1.18	1.12		1.11
Year	Electrical machinery equipment industry					Communication, computer, and other electronic equipment manufacturing industry						Instrument manufacturing industry				Equipment manufacturing industry
	GTFP		Effe		Tech	GTFP		Effe		Tech		GTFP	Effe		Tech	GTFP		Effe		Tech
2004	1.09		1.67		0.65	1.11		1.00		1.11		1.00	1.00		1.00	1.16		1.00		1.16
2005	1.17		1.00		1.17	1.20		1.00		1.20		1.00	1.00		1.00	1.35		1.00		1.35
2006	1.19		1.00		1.19	1.11		1.00		1.11		0.58	1.00		0.58	1.39		1.00		1.39
2007	1.13		1.00		1.13	1.05		1.00		1.05		0.88	1.00		0.88	1.32		1.00		1.32
2008	1.10		1.00		1.10	1.04		1.00		1.04		0.98	1.00		0.98	1.19		1.00		1.19
2009	1.04		1.00		1.04	1.01		1.00		1.01		1.03	1.00		1.03	1.05		1.00		1.05
2010	1.19		1.00		1.19	1.07		1.00		1.07		0.82	1.00		0.82	1.20		1.00		1.20
2011	1.20		1.00		1.20	1.45		1.00		1.45		2.37	1.00		2.37	1.27		1.00		1.27
2012	1.12		1.00		1.12	0.81		1.00		0.81		0.77	1.00		0.77	1.06		1.00		1.06
2013	1.07		1.00		1.07	1.50		1.00		1.50		1.29	1.00		1.29	1.07		1.00		1.07
2014	1.10		1.00		1.10	0.94		1.00		0.94		0.74	1.00		0.74	1.16		1.00		1.16
2015	1.56		1.00		1.56	1.06		1.00		1.06		1.36	1.00		1.36	1.15		1.00		1.15
Average	1.16		1.06		1.13	1.11		1.00		1.11		1.07	1.00		1.07	1.20		1.00		1.20

Data source: Calculated based on the data of ‘China Industrial Economic Statistical Yearbook’, ‘China Energy Statistical Yearbook’, and ‘China Statistical Yearbook’

Table 2. Variables description.

Variable type	Variable symbol	Variable name	Variable measurement
Explained variables	GTFP	Green Total Factor Productivity	Calculated from Part1
Explana-tory variables	FDI	Foreign direct investment	Total assets of foreign-invested, HongKong-invested, Macao-invested, and Taiwan-invested enterprises/Total number of employees
	IMP	Import trade	Total imports by industries/Main business income by industries
	EXP	Export trade	Total exports by industries/Main business income by industries
Control variables	lnHUM	Human capital	Natural logarithm of scientific and technological activities by industries
	RDI	Technological innovation	Sum of internal expenditures for scientific and technological activities, technological transformation costs, and absorption costs in industries/Total profits of industries
	ENR	Environmental regulation	Sum of industrial wastewater and waste gas treatment expenses by industries/Main business income by industries

Table 3. Effects of FDI and trade openness on GTFP.

Variables	(1) Mixed regression effect	(2) Fixed effect	(3) Random effect
IMP	−1.422*(−1.89)	−2.312**(−2.86)	−1.422**(1.89)
EXP	2.981***(2.97)	4.137***(3.69)	2.98***(2.97)
FDI	0.035***(6.23)	0.048***(7.07)	0.035***(6.23)
lnHUM	1.009***(5.68)	0.579**(2.26)	1.010***(5.68)
RDI	−1.504**(−2.16)	−.861(−1.11)	−1.504**(−2.16)
ENR	0.081***(3.18)	0.074**(2.52)	0.081***(3.18)
N	104	104	104
r^2-a	0.652	0.637	-
F	17.45	7.53	-

*,**, and *** indicate significance levels at 10%, 5%, and 1%, respectively; the values in parentheses are tvalues.

Table 4. Summary of HUM and RDI crossing threshold in equipment manufacturing industry in 2017.

Threshold variables	Threshold interval	Industries within the interval
Human capital	HUM<340,033	Instrument manufacturing industry, Metal products industry, Special equipment industry, General equipment industry
	340,033≤ HUM<518,658	Electrical machinery equipment industry, transportation equipment manufacturing industry
	HUM≥518,658	Communication, computer, and other electronic equipment manufacturing; equipment manufacturing industry
Technological innovation	RDI<0.1508	Special equipment industry
	0.1508≤ RDI<0.2575	Metal products industry
	RDI≥0.2575	Instrument manufacturing industry; general equipment manufacturing industry; transportation equipment manufacturing industry; equipment manufacturing industry; electrical machinery equipment industry; communications, computer, and other electronic equipment manufacturing industry

The threshold interval HUM in the table above is the inverse function and takes the original value. The industries in the interval are sorted according to the original value of the threshold variable.

Table 5. Summary of environmental regulation levels across the equipment manufacturing industry in 2015.

Threshold variables	Threshold interval	Industries within the interval
Environmental regulation	ENR<0.03%	Instrument manufacturing industry, special equipment industry, general equipment industry
	0.03%≤ENR<0.047%	Transportation equipment manufacturing industry, electrical machinery equipment industry, and equipment manufacturing industry
	ENR≥0.047%	Communications, computer, and other electronic equipment manufacturing industry; metal products industry

Note: The data in the table above was compiled by the author. The industries in the range are sorted according to the original value of the threshold variable.