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An Empirical Analysis of Energy Consumption, FDI and High Quality Development Based on Time Series Data of Zhejiang Province

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  • Shaolong Zeng

    (Economics and Management School, Hangzhou Normal University, Hangzhou 311121, China)

  • Yiqun Liu

    (School of Economics, Zhejiang University of Finance & Economics, Hangzhou 310018, China)

  • Junjie Ding

    (School of Economics, Zhejiang University, Hangzhou 310027, China)

  • Danlu Xu

    (Institute of Scientific and Technical Information, Chinese Academy of Tropical Agricultural Science, Haikou 571101, China)

Abstract

This paper aims to identify the relationship among energy consumption, FDI, and economic development in China from 1993 to 2017, taking Zhejiang as an example. FDI is the main factor of the rapid development of Zhejiang’s open economy, which promotes the development of the economy, but also leads to the growth in energy consumption. Based on the time series data of energy consumption, FDI inflow, and GDP in Zhejiang from 1993 to 2017, we choose the vector auto-regression (VAR) model and try to identify the relationship among energy consumption, FDI, and economic development. The results indicate that there is a long-run equilibrium relationship among them. The FDI inflow promotes energy consumption, and the energy consumption promotes FDI inflow in turn. FDI promotes economic growth indirectly through energy consumption. Therefore, improving the quality of FDI and energy efficiency has become an inevitable choice to achieve the transition of Zhejiang’s economy from high speed growth to high quality growth.

Suggested Citation

  • Shaolong Zeng & Yiqun Liu & Junjie Ding & Danlu Xu, 2020. "An Empirical Analysis of Energy Consumption, FDI and High Quality Development Based on Time Series Data of Zhejiang Province," IJERPH, MDPI, vol. 17(9), pages 1-17, May.
    • Handle: RePEc:gam:jijerp:v:17:y:2020:i:9:p:3321-:d:356208
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    3. Zhang, Zhuo & Zhao, Yongliang & Cai, Haiya & Ajaz, Tahseen, 2023. "Influence of renewable energy infrastructure, Chinese outward FDI, and technical efficiency on ecological sustainability in belt and road node economies," Renewable Energy, Elsevier, vol. 205(C), pages 608-616.
    4. Heru Wahyudi & Widia Anggi Palupi, 2023. "Relationship between Energy Consumption, Foreign Direct Investment, and Labor Force Participation Using the VECM Model: Empirical Study in OECD Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 157-165, March.
    5. Xiaoyi Wen & Shangjiu Wang & Shaoyong Li & Liang Cheng & Keqiang Li & Qing Zheng & Baoreng Zhang, 2024. "Impact Factors of Industrial Pollution and Carbon Reduction under the “Dual Carbon” Target: A Case Study of Urban Aggregation in the Pearl River Delta and Yangtze River Delta," Sustainability, MDPI, vol. 16(5), pages 1-16, February.
    6. Juan Huang & Ziyi Wu, 2022. "Impact of Environmental Regulations on Export Trade—Empirical Analysis Based on Zhejiang Province," IJERPH, MDPI, vol. 19(19), pages 1-14, October.
    7. Yuanshuo Xu & Jiahe Liang & Zhaoyingzi Dong & Minjun Shi, 2022. "Can Environmental Regulation Promote Green Innovation and Productivity? The Moderating Role of Government Interventions in Urban China," IJERPH, MDPI, vol. 19(21), pages 1-17, October.

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