The Impact of OFDI, Financial Development, and Green Credit on Carbon Reduction

Based on the panel data of 30 provinces in China from 2008 to 2020, this paper empirically analyzes the influence and mechanism of OFDI on carbon emissions by using the intermediary effect model, The regulatory effect model is used to analyze the role of green credit and financial development level in the process of OFDI regulating carbon emissions. The research results show that OFDI can significantly reduce China's carbon emission intensity, and every 1% increase in OFDI leads to a 0.0508% decrease in carbon emission intensity, and the current period carbon emission intensity is positively influenced by the previous period carbon emission intensity; OFDI has an indirect inhibitory effect on China's carbon emission intensity through two paths of promoting green technology progress and economic scale expansion. However, the indirect effects of industrial structure upgrading and energy restructuring are not statistically significant; green credit strengthens the carbon emission reduction effect of OFDI, but the level of financial services weakens the carbon emission reduction effect of OFDI. On this basis, suggestions are made to accelerate the green transformation of OFDI, continuously improve the level of green technology, reasonably expand the scale of the economy and increase the support of green credit.