Does China’s Two-Way FDI Coordination ImproveIts Green Total Factor Productivity?

Since the 21^st century, the green development impact of foreign direct investment (FDI) has attracted much attention from scholars. Especially, the influence of FDI-coordinated development on green total factor productivity (GTFP) is of great research significance. Using provincial-level panel data in China from 2011 to 2020 with an intermediary effect model and a threshold effect model, this study examines the impact of two-way FDI coordination development on GTFP. The results indicate that: (1) Two-way FDI coordination development significantly improves GTFP growth in China. Compared with the eastern region, the effects in central and western China are stronger. However, the effect in northeastern China is negative. (2) The mechanism test found that two-way FDI coordination development significantly improves GTFP through talent innovation, technological innovation, and institutional innovation. (3) The threshold analysis indicates that the impact on GTFP is stronger when research and development (R&D) intensity and urbanization are low. This study not only provides evidence for evaluating the impact of two-way FDI coordination development, but also provides a reference for promoting domestic green transformation.