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| Heterogeneous Effects of Innovation Quality on Green Total Factor Productivity |
| Dong Huizhong1，Liu Shuai2, Liu Mingrui2, Tang Lei2 |
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Abstract This paper applies SBM directional distance function to measure green total factor productivity (GTFP) growth for Chinese 30 Provinces over the period 2006 to 2016. We also build a dynamic panel threshold model with environmental regulation as threshold variable, and then we empirically examine the nonlinear relationship between innovation quality and GTFP growth. The results show that China's GTFP growth is generally low and has significant differences under the constraint of undesired output. There's a threshold effects between innovation quality and GTFP growth. Further grouping studies show that the impact of threshold effects and innovation quality on GTFP growth are heterogeneity. In eastern the threshold value is higher than other regions, but the effect of innovation quality and GTFP growth is bigger. To improve the GTFP growth we could enact more stringent environmental regulation measures in the eastern China, and the other regions should explore other factors besides innovation to improve the GTFP growth.
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