Management Review ›› 2023, Vol. 35 ›› Issue (3): 105-115.

• Innovation and Entrepreneurship Management • Previous Articles     Next Articles

Could Trade Openness Accelerate Regional Green Innovation?——Based on Bidirectional FDI Dynamic Adjustment

Han Xianfeng1, Song Wenfei2, Li Boxin3   

  1. 1. Faculty of Management and Economics, Kunming University of Science and Technology, Kunming 650093;
    2. Northwest Institute of Historical Environment and Socio-Economic Development, Shaanxi Normal University, Xi'an 710062;
    3. School of Public Administration, Xi'an University of Finance and Economics, Xi'an 710061
  • Received:2020-12-07 Online:2023-03-28 Published:2023-04-28

Abstract: This paper explains the internal mechanism of trade opening and two-way FDI linkage affecting regional green innovation, and conducts an empirical test based on China's 2004-2017 inter-provincial panel data and threshold measurement technology. The results show that: trade openness has obvious negative impact on regional green innovation, and the inhibition effect presents nonlinear evolutionary feature with diminishing marginal efficiency; bidirectional FDI is an important “regulator” to improve the “realistic dilemma” of trade opening and green innovation, with OFDI and IFDI playing a “U” and an inverted “U” heterogeneous dynamic regulating role respectively in the green innovation effect of trade opening; the optimal combination strategy of high-intensity OFDI and low-intensity IFDI could reverse the negative impact of trade openness on regional green innovation fundamentally, while the sub optimal combination strategy of low-intensity OFDI and high-intensity IFDI will weaken the negative impact of trade openness on regional green innovation; at present, promoting the integration of two-way FDI and trade openness will help promote regional green innovation to a certain extent, but continuous improvement of OFDI intensity is more conducive to releasing the green innovation dividend of trade opening, while blindly increasing IFDI intensity will be counterproductive; there are significant spatial differences in the dynamic regulation effect of bidirectional FDI, and there are differences in the alternate evolution of “reverse force effect” and “correction effect” in different regions.

Key words: trade openness, regional green innovation, two-way FDI