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Energy infrastructure and foreign direct investment in China

Author

Listed:
  • Hameed Khan

    (Jilin University, China)

  • Hameed Khan

    (Kohat University of Science & Technology, Pakistan)

  • Imrab Shaheen

    (University of Kotli Azad Jammu and Kashmir, Pakistan)

  • Masood Ahmed

    (National University of Singapore, Singapore)

  • Elmin Bakhshaliev

    (Jilin University, China)

  • Hashmat Ullah Khan

    (Jilin University, China)

  • Asif Kabir

    (University of Kotli Azad Jammu and Kashmir, Pakistan)

Abstract

China's integration into the world economy, and maintaining its rapid economic growth, demand more energy with a prominent concern of reducing carbon footprints. Keeping in view the shortcomings in previous studies, we investigate the relationship between energy infrastructure and foreign direct investment in China in the framework of the ARDL and VECM approaches. We found that energy positively affects FDI, while the reverse effect does not hold. FDI does not affect the energy sector. Policy implications can be drawn from this study, such as technological diffusion from FDI to enhance energy efficiency and reduce carbon footprints.

Suggested Citation

  • Hameed Khan & Hameed Khan & Imrab Shaheen & Masood Ahmed & Elmin Bakhshaliev & Hashmat Ullah Khan & Asif Kabir, 2020. "Energy infrastructure and foreign direct investment in China," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(1), pages 233-248, September.
    • Handle: RePEc:ssi:jouesi:v:8:y:2020:i:1:p:233-248
    DOI: 10.9770/jesi.2020.8.1(16)
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    References listed on IDEAS

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    1. Dharmapala, Dhammika & Hines Jr., James R., 2009. "Which countries become tax havens?," Journal of Public Economics, Elsevier, vol. 93(9-10), pages 1058-1068, October.
    2. Julian Donaubauer & Birgit E. Meyer & Peter Nunnenkamp, 2016. "A New Global Index of Infrastructure: Construction, Rankings and Applications," The World Economy, Wiley Blackwell, vol. 39(2), pages 236-259, February.
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    Cited by:

    1. Faisal Mehmood & Muhammad Atique & Wang Bing & Hameed Khan & Henna Henna, 2021. "Infrastructure and sectoral FDI in China: an empirical analysis," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 3(2), pages 160-175, June.
    2. Faisal Mehmood & Muhammad Atique & Wang Bing & Hameed Khan & Henna Henna, 2021. "Infrastructure and sectoral FDI in China: an empirical analysis," Post-Print hal-03583884, HAL.

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    More about this item

    Keywords

    energy consumption; FDI; ARDL;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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