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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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