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Economic and environmental performance of the belt and road countries under convex and nonconvex production technologies

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  • Yuan, Qianqian
  • Baležentis, Tomas
  • Shen, Zhiyang
  • Streimikiene, Dalia

Abstract

The Belt and Road Initiative (BRI) is expected to boost the economic and technological cooperation among the participating countries. In this paper, we argue that the economic and environmental efficiency can be used as measures identifying the best practice in the BRI. However, the results of the analysis may be affected by perturbations in the data and outlying observations. The outliers may lead to biased policy implications. Unlike previous research, this paper compares economic and environmental performance in developing countries using both convex and nonconvex production technologies based on a nonparametric framework. Specifically, this paper extends the by-production model with nonconvex technology. The model allows reducing the impact of extreme production plans (e.g., small or large countries). The resampling approach is applied for the by-production framework. The research covers 61 countries along the Belt and Road during 2000−2017. Our results indicate that the influence of outliers is more significant for convex technology than nonconvex technology. The use of the robust approach is particularly important when a convex technology is assumed. The proposed approach also allowed identifying BRI countries that are significantly over- or underperforming in either economic or environmental efficiency.

Suggested Citation

  • Yuan, Qianqian & Baležentis, Tomas & Shen, Zhiyang & Streimikiene, Dalia, 2021. "Economic and environmental performance of the belt and road countries under convex and nonconvex production technologies," Journal of Asian Economics, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:asieco:v:75:y:2021:i:c:s1049007821000506
    DOI: 10.1016/j.asieco.2021.101321
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    Cited by:

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    3. Arnaud Abad & Michell Arias & Paola Ravelojaona, 2023. "Environmental Productivity Assessment: an Illustration with the Ecuadorian Oil Industry," Post-Print hal-03574542, HAL.
    4. Haiyan Deng & Ge Bai & Kristiaan Kerstens & Zhiyang Shen, 2023. "Comparing green productivity under convex and nonconvex technologies: Which is a robust approach consistent with energy structure?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(8), pages 4377-4394, December.
    5. Frederic Ang & Kristiaan Kerstens & Jafar Sadeghi, 2023. "Energy productivity and greenhouse gas emission intensity in Dutch dairy farms: A Hicks–Moorsteen by‐production approach under non‐convexity and convexity with equivalence results," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(2), pages 492-509, June.
    6. Harald Dyckhoff, 2023. "Proper modelling of industrial production systems with unintended outputs: a different perspective," Journal of Productivity Analysis, Springer, vol. 59(2), pages 173-188, April.
    7. Arnaud Abad, 2022. "An unified framework for measuring pollution-adjusted productivity change," Working Papers hal-03592388, HAL.
    8. Zhao, Hong & Li, Jiayi & Lei, Yiqing & Zhou, Mingming, 2022. "Risk spillover of banking across regions: Evidence from the belt and road countries," Emerging Markets Review, Elsevier, vol. 52(C).
    9. Malin Song & Weiliang Tao, 2022. "Coupling and coordination analysis of China's regional urban‐rural integration and land‐use efficiency," Growth and Change, Wiley Blackwell, vol. 53(3), pages 1384-1413, September.
    10. Stefano NASINI & Rabia NESSAH, 2021. "Endogenous Learning in Multi-Sector Economies," Working Papers 2021-EQM-08, IESEG School of Management, revised Oct 2023.

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