Spatial spillover effect of the synergistic development of inward and outward foreign direct investment on ecological well-being performance in China

Inward and outward foreign direct investment (FDI) can promote a country's economic growth, but the effect of inward and outward FDI on regional ecological well-being performance (EWP) is uncertain. Using the data of 30 Chinese provinces from 2004 to 2019, this study employs the spatial Dubin model to examine the spatial spillover effects of synergistic development of inward and outward FDI on regional ecological well-being performance and their mediating mechanisms. The result shows that the synergistic development of inward and outward FDI can significantly improve regional EWP and imply a positive spatial spillover effect. The dynamic effect analysis indicates that synergistic development of inward and outward FDI has a lag effect on the improvement of regional EWP. The mechanism test found that the synergistic development of inward and outward FDI can enhance the EWP of the region and the spatially related regions by promoting the rationalization, upgrading and technological innovation of the industrial structure. These findings have some insights into improving global ecological well-being in an open economy.