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Two-Way FDI assists agricultural sustainable development: Based on digitalization and greening perspectives
Tingwei Chen1, Feng Yang1, Yujie Li1
1School of Economics, Shandong Normal University, Jinan, Shandong, China.
Abstract:
With the new challenges and crises facing agriculture, digitalization and green transformation have become important ways to solve the problems. This paper uses an international economics perspective to chart a new path for sustainable agricultural development. Specifically, it analyzes whether two-way international direct investment (FDI) can facilitate agricultural digital-green fusion(DGF)? Using a sample of 31 provinces (autonomous regions) from 2012 to 2021, this study finds: (1) Two-way FDI can significantly contribute to agriculture's DGF. (2) In the mechanism test, it is proved that two-way FDI can promote agriculture's DGF level by promoting green technology innovation capacity and overall regional technology innovation capacity. (3) The positive effects of two-way FDI are prominent in the eastern and central regions, coastal regions, and economically developed areas. (4) In the spatial Durbin model, the local two-way FDI growth improves agriculture's DGF level in the surrounding areas to a certain extent. The government is advised to prioritize openness, foster an environment for technological innovation, leverage spatial radiation for agricultural DGF, and advance digitally empowered agricultural modernization.
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