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The Influence of Urbanization and Environmental Factors on the Financial Performance of Retail and Automotive Industries in China

Author

Listed:
  • Faisal Mahmood

    (College of Business Administration, Al-Hamd Islamic University, Quetta 87300, Pakistan)

  • Wasim Al-Shattarat

    (College of Business Administration, Gulf University for Science and Technology, Mubarak Al-Abdullah 32093, Kuwait)

  • Ruba Hamed

    (College of Business Administration, Alfaisal University, Riyadh 11533, Saudi Arabia)

  • Basiem Al-Shattarat

    (College of Business Administration, Prince Sultan University, Riyadh 12435, Saudi Arabia)

  • Kameleddine Benameur

    (College of Business Administration, American University of Kuwait, Safat 13034, Kuwait)

  • Ahmed Hassanein

    (College of Business Administration, Gulf University for Science and Technology, Mubarak Al-Abdullah 32093, Kuwait
    Faculty of Commerce, Mansoura University, Mansoura City 35516, Egypt)

  • Yasean Tahat

    (College of Business Administration, Gulf University for Science and Technology, Mubarak Al-Abdullah 32093, Kuwait)

Abstract

This study probes the intersection of urbanization, environmental degradation, and corporate performance in China’s retail and automotive sectors. Utilizing data from 23 regions spanning 2000–2022, the research elucidates the impacts of urban growth, infrastructure development, and particulate matter 2.5 pollution (PM2.5) on these industries. The study uses panel data from 2000 to 2022 and the corresponding analytical random effect model, along with pre- and post-estimation tests for the main results. The findings reveal that while urban population growth bolsters retail sales, it adversely affects the automotive industry. Urban infrastructure does not influence conventional sectors, yet it negatively impacts online retail sales. PM2.5 pollution depresses retail and automotive sales but boosts online sales, underscoring the rising environmental consciousness among consumers. The urban population significantly moderates the relationship between PM2.5 pollution and sales across sectors, hinting at unique consumption patterns in populated urban areas. This study provides critical insights for policymakers aiming for sustainable economic growth, and encourages further research with more region-specific factors and extended time frames.

Suggested Citation

  • Faisal Mahmood & Wasim Al-Shattarat & Ruba Hamed & Basiem Al-Shattarat & Kameleddine Benameur & Ahmed Hassanein & Yasean Tahat, 2023. "The Influence of Urbanization and Environmental Factors on the Financial Performance of Retail and Automotive Industries in China," Sustainability, MDPI, vol. 15(23), pages 1-28, November.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:23:p:16138-:d:1284179
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    References listed on IDEAS

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    Cited by:

    1. Azam, Irsa & Guo, Yongsheng & Naseer, Mirza Muhammad, 2025. "The sustainability challenge and social benefits of industrialisation in NICs," Resources Policy, Elsevier, vol. 103(C).
    2. Aymen Ajina & Ajej Bhiri Najah & Fathi Jouini, 2025. "CO2 Emissions and Firm Performance: Assessing the Effectiveness of the Paris Agreement and the Moderating Role of ESG Performance and ISO 14001 Certification," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(6), pages 8026-8051, November.
    3. Mehdi Seraj & Abdulmajeed Tsowa Muhammad, 2025. "The role of urbanization and industrialization in economic development in the East Asia region," Letters in Spatial and Resource Sciences, Springer, vol. 18(1), pages 1-32, December.

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