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Under the background of global warming, how to reduce carbon emissions and realize green and sustainable development in China is worth exploring. Firstly, this paper makes theoretical analysis, and considers that FDI in producer services can reduce the carbon emission of manufacturing industry by optimizing the input structure of manufacturing industry, improving the productivity and technical level, and enhancing the management ability and resource allocation ability of manufacturing enterprises. Then, using the panel data of China’s industries from 2004 to 2014, this paper uses two-way FE method to carry out empirical test, and finds that the increase of FDI in producer services can significantly reduce carbon emissions. Therefore, it is necessary to actively guide multinational corporations to invest in China’s producer services industry, to promote green and sustainable economic development.

Research on the Impact of FDI in Producer Services on Carbon Emissions