Antecedents and consequences of Green-tech FDI in emerging markets

Engineering notes

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Chinese explanation / 中文解读

中文解读待补充：本站会优先为大语言模型、生成式AI、ChatGPT相关技术、计算机视觉、深度学习等高价值论文补充中文说明。

Original abstract

As environmental pressures intensify, attracting sustainable foreign direct investment (FDI), particularly green-tech FDI, has become a critical pathway for emerging markets to achieve environmental sustainability. However, existing research remains fragmented, offering limited insights into why green-tech FDI enters emerging markets and how it affects regional green innovation. This thesis addresses these gaps by systematically examining both the antecedents and consequences of green-tech FDI through three empirical studies using regional data from China. Study 1 and Study 2 focus on the antecedents of green-tech FDI. Study 1 examines how host-country conditions can attract green-tech FDI, highlighting the role of environmental management information disclosure (EMID) by domestic firms in reducing information gaps and strengthening green market–seeking motives. Study 2 shifts attention to the active decision-making of green-tech FDI, showing that under uncertainty, green-tech foreign investors engage in identity-based bandwagon learning by imitating peers with similar green identities, thereby mitigating investment risks. Study 3 turns to the consequences of green-tech FDI. It demonstrates that, due to the technological complexity of green innovation and limited absorptive capacity in emerging markets, green-tech FDI may generate crowding-out effects rather than purely positive spillovers. Adopting a network perspective, the study further finds that universities play a key moderating role: through broad linkages and deep collaborations, they help mitigate negative spillovers and facilitate the diffusion of green technologies. Together, the three studies advance the literature on sustainable FDI by differentiating green-tech FDI from general FDI and identifying the specific mechanisms that shape its entry decisions and local innovation outcomes. Practically, the findings provide guidance for emerging-market governments and firms on how to attract and manage sustainable investment, balance growth with environmental objectives, and strengthen local innovation ecosystems.

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