The Influence of Reverse Technology Spillover of Outward Foreign Direct Investment on Green Total Factor Productivity in China’s Manufacturing Industry

Outward foreign direct investment (OFDI) is an important channel for China to obtain advanced technology spillover to promote green production upgrading. As a pillar of the national economy and also a large-scale pollution emission industry, can the manufacturing industry benefit from the reverse technology spillover of OFDI and improve its green total factor productivity (GTFP)? Based on the provincial data of China from 2005 to 2019, this paper analyzes the effect and moderating mechanism of reverse technology spillover of OFDI on domestic manufacturing GTFP theoretically and empirically. The results show that the reverse technology spillover of OFDI cannot significantly promote the growth of manufacturing GTFP in the sample period. The heterogeneity analysis further proves that the inhibition effect similar to that of the whole sample appears in the eastern region, but in the central and western regions, the reverse technology spillover of OFDI can significantly improve the manufacturing GTFP, and this positive effect in the central region is greater. Additionally, absorptive capacity characterized by human capital, economic development and financial development can actively adjust the impact of reverse technology spillover of OFDI on manufacturing GTFP, of which the positive moderating effect of financial development is the most significant.