Synergistic Development of Two-Way FDI, Environmental Regulation, and Green Total Factor Productivity

With the deepening practice of the green development concept, environmental regulation has become an important driving force. Meanwhile,under the new development pattern, the synergistic development of outward foreign direct investment (OFDI) participating in the international circulation and foreign direct investment (IFDI) participating in the domestic circulation has received increasing attention. It is worth exploring whether two-way FDI (Foreign direct investment)meets the requirements of green development and whether it can affect the development of green total factor productivity(GTFP) through environmental regulation. This article selects data from various provinces in China from 2012 to 2022 as the examination sample.And through benchmark regression and mesomeric effect regression, fixed effect model is used to deeply study the impact of two-way FDI and environmental regulation on green total factor productivity,and the mesomeric effect from environmental regulation exerting in the improvement of two-way on the improvement of green total factor productivity. The results show that two-way FDI and environmental regulation significantly improve green total factor productivity; and as a mediator variable environmental regulations can strengthen the promoting effect of the improvement of two-way FDI on green total factor productivity. And a robustness test was conducted to ensure the correctness of the empirical results. Finally, targeted suggestions are proposed: improving the level of synergistic development of two-way direct investment, reasonably setting and implementing environmental regulatory standards, and optimizing the means of implementing environmental regulations.