The Spatial Spillover Effect of OFDI on Energy Efficiency

Abstract

The article uses the spatial Durbin model to examine the spatial spillover effect and mechanism of outward foreign direct investment (OFDI) on China’s green total factor energy efficiency. The study found that, from an overall perspective, outward direct investment negatively impacts local green total factor energy efficiency and has a negative spatial spillover effect on green total factor energy efficiency in geographically related regions. From a regional perspective, the impact of outward direct investment on regional green total factor energy efficiency shows significant regional heterogeneity. In contrast, outward direct investment in the eastern region only promotes improving local green total factor energy efficiency. Mechanism analysis found that outward direct investment negatively impacts the region’s green total factor energy efficiency by inhibiting green technology innovation and industrial structure upgrading. These research conclusions can provide important references for other countries to optimize their foreign investment policies and achieve sustainable development.

Keywords:

• OFDI
• Green total factor energy efficiency
• spatial spillover effects
• green technology innovation
• Industrial restructuring

Acknowledgements

This paper was supported by the National Natural Science Foundation of China (Nos.72064030; Nos. 71864018; Nos. 72264015), and the Humanities and Social Sciences Foundationin Universities of Jiangxi Province (Nos. GL21132).

Authors’ contributions

All authors contributed equally.

Disclosure statement

The authors declare no competing interests.

Ethical approval

'This article does not contain any studies with human participants performed by any of the authors

Informed consent

This article does not contain any studies with human participants performed by any of the authors.

Data availability

Data sharing is not applicable to this research as no data were generated or analysed.