FDI Quality, Technology Absorption Capacity and Renewable Energy Total Factor Productivity - Mechanism Analysis Based on Quartile Regression Analysis of Belt and Road Countries

Based on the renewable energy industry of the countries along the “Belt and Road”, this paper selects the panel data from 2000 to 2020 to study the mechanism of the Foreigner Direct Investment (FDI) quality on the Renewable Energy Total Factor Productivity (RTFP) of the host country through the technology absorption capacity, furthermore, takes 2015 as a node to compare the changes in the RTFP after accession to the “Belt and Road”. The finding shows that: (1) FDI quality significantly promote the RTFP in the host country, and the growth is obvious after 2015; (2) the technology absorption capacity can strengthen the spillover effect of FDI quality, the moderating effect was significant and the value is 0.032; (3) the FDI quality plays a facilitating role in RTFP through the dimensions of FDI production capacity and FDI technological contribution, but the impact of FDI localization is not significant. In addition, for countries with low RTFP, the promotional effect of technology absorption capacity is not significant, and as the RTFP continues to improve, the more significant of technology absorption capacity on FDI quality technology spillover. Therefore, Belt and Road countries should improve the quality of their FDI and increase their investment in R&D in conjunction with the upgrading of industrial to enhance their technological absorptive capacity. At the same time, by taking advantage of the member countries of the “Belt and Road” economic cooperation, realizing the development of renewable energy industry.