Lv Youjin, Gao Bo, Kong Lingchi: Domestic Market Integration and Green Total Factor Productivity – Nonlinear Relationship and Threshold Effect Test

Release time:2021-08-01Author: Lv Youjin, Gao Bo, Kong Lingchi

Abstract: Based on the inter provincial panel data from 2000 to 2018, the Malmquist Luenberger index is used to measure the green total factor productivity, and the fixed effect model and panel threshold model are used to empirically test the impact of domestic market integration on green total factor productivity. The results show that: China's green ML index is generally on the rise, which benefits from the improvement of green technology progress, and there is a spatial pattern of decreasing from east to west; Market integration has a U-shaped nonlinear impact on green total factor productivity through scale effect, competition effect and allocation effect; The heterogeneity test shows that there is a positive linear relationship between market integration and green total factor productivity in the eastern region, while there is a U-shaped nonlinear relationship in the central and western regions and low resource endowment regions; The threshold effect test results show that under the conditions of high financial development, human capital and scientific and technological innovation, market integration can more significantly promote the improvement of green total factor productivity.