Abstract: As an important measure of the new quality productivity, Green Total Factor Productivity (GTFP) reflects the concept of green development in the new era and the requirements for high-quality development. Starting from the perspective of factor endowment gap, this paper analyzes the impact and the micro mechanism of the policies encouraging foreign investment on green total factor productivity of enterprises. Based on the China Industrial Enterprise Database and Industrial Enterprise Pollution Database from 2000 to 2013, this paper adopts the Malmquist-Renberg Index method to measure the green total factor productivity of industrial enterprises. The relaxation policy of foreign investment control in China is identified through the Foreign Investment Industry Guidance Catalogue, and the impact of the gap in factor endowments between enterprises and local areas on the green total factor productivity of enterprises is examined. The research results indicate that whether the policy of encouraging foreign investment can improve the green total factor productivity of enterprises depends on whether the production technology of enterprises can match the local factor endowment structure. If the gap in factor endowments between enterprises and local areas is too large, it will weaken the effect of foreign investment opening policies on the improvement of green total factor productivity of enterprises. The inherent mechanism is that enterprises whose production technology does not conform to the local factor endowment structure will experience slower progress in green technology, lower management efficiency, and lower concentration of product allocation when faced with policies encouraging foreign investment, resulting in a decrease in their green total factor productivity.

Key words: factor endowment structure, capital-labor ratio, opening up to foreign investment, green total factor productivity