Interaction of FDI Technology Diffusion,Indigenous Innovation and Environment Regulation—1992-2010 Time Series of Chinese Industry
Based on 1992-2010 time series of Chinese industry,we use VAR model,cointegration,Granger causality test,and impulse response function and variance decomposition to empirically test the interaction of FDI technology diffusion,indigenous innovation and environment regulation. The results show that there is a long- term equilibrium relationship on FDI technology diffusion,indigenous innovation and environment regulation. We also find that environment regulation and FDI technology diffusion is the causality of each other,and FDI technology diffusion has a negative impact on environment regulation,while environment regulation has a positive impact on FDI technology diffusion,so they are adilemmainteraction; environment regulation is the causality of indigenous innovation,and the cumulative impact of environment regulation on indigenous innovation is positive after the first negative.