The impact of the spatial agglomeration of foreign direct investment on green total factor productivity of Chinese cities

Based on data of 285 Chinese cities from 2003 to 2017, this paper mainly studies the impact of the spatial agglomeration of Foreign direct investment (FDI) on the green total factor productivity(TFP) of Chinese cities by SDM model. It is measured that China's urban green TFP generally has been developing well from 2003 to 2017, and progress in green technology plays an important role in improving urban green TFP. Both global Moran index and local Moran scatter plots show that FDI and green TFP are characterized by strong spatial agglomeration. This suggests green TFP is closely related to the spatial agglomeration of FDI in a region. The paper finds that FDI plays a positive role in promoting green TFP in high-high and high-low cluster cities, and the technology spillover effect of highly agglomerated FDI is more significant than that of decentralized FDI, thus promoting the upgrading and agglomeration of green TFP in itself and surrounding cities. The positive benefits of low-high and low-low cluster cities are not significant. Therefore, it is necessary to go beyond its policy of administrative regions and give full play to radiation effect of High-high FDI agglomeration cities and promote the green TFP of their surrounding cities. •Green TFP is closely related to the spatial agglomeration of FDI in a region.•The impact of FDI on green TFP of different agglomeration cities is different.•Technology spillover effect of highly agglomerated FDI is more significant than that of decentralized FDI.