Local Government Competition, Environmental Regulation and Total Factor Productivity
QIN Lingui1,2, SHEN Tiyan1
1. School of Government, Peking University, Beijing 100871, China; 2. College of Economics and Management, Shenyang Agricultural University, Shenyang 110866, China
Abstract In the stage of China’s economy turning to high-quality development, how to coordinate the relationship between local government competition, environmental regulation and the transformation of economic growth mode is crucial. Based on this, this paper selects the panel data of 29 provinces (municipalities and autonomous regions) in China from 2001 to 2017, measures local government competition from the perspectives of foreign direct investment, fiscal expenditure and taxation, and then through the use of systematic GMM estimation method explores the impact of local government competition and environmental regulation on total factor productivity. And the conclusion is that: (1) Local government competition is conducive to the promotion of total factor productivity. (2) Under the influence of environmental regulation, the promotion of local government competition to total factor productivity has been weakened. At the same time, from the perspective of the current intensity of environmental regulation, local government fiscal expenditure competition and tax competition are all conducive to the improvement of total factor productivity, while foreign direct investment competition is not conducive to the improvement of total factor productivity. (3) Under the background of further investigation of different levels of local government competition, the impact of local government competition and environmental regulation on total factor productivity is regionally heterogeneous.