Impact of geopolitical risk on green international technology spillovers: FDI and import channels

Abstract

This study investigates the impact of geopolitical risk (GPR) on green international technology spillovers through foreign direct investment (FDI) and import channels. The research aims to understand how GPR influences the transfer of green technologies, which are crucial for sustainable development, particularly in developing countries. Utilizing data from 30 Chinese provinces from 2003 to 2019, our findings indicate that increased GPR significantly hinders green technology spillovers through both FDI and imports. Additionally, the research demonstrates that advancements in local green technology levels (GTL), marketization (Mark), and intellectual property rights protection (IPRP) can mitigate the adverse effects of GPR. These results underscore the critical importance of political stability and robust internal mechanisms in promoting international technological exchanges. This study contributes to the literature on the intersection of political risks and technological advancement and provides actionable insights for policymakers to enhance resilience against geopolitical uncertainties, thereby fostering sustainable economic development.

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