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Impacts of FDI Renewable Energy Technology Spillover on China’s Energy Industry Performance

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  • Weiwei Liu

    () (School of Economics and Management, Harbin Engineering University, Harbin 150001, China
    Management School, Queen’s University Belfast, Belfast BT9 5EE, UK)

  • Xiandong Xu

    () (School of Electronics, Electrical Engineering and Computer Science, Queen’s University Belfast, Belfast BT9 5AH, UK)

  • Zhile Yang

    () (School of Electronics, Electrical Engineering and Computer Science, Queen’s University Belfast, Belfast BT9 5AH, UK)

  • Jianyu Zhao

    () (School of Economics and Management, Harbin Engineering University, Harbin 150001, China)

  • Jing Xing

    () (School of Economics and Management, Harbin Engineering University, Harbin 150001, China)

Abstract

Environmental friendly renewable energy plays an indispensable role in energy industry development. Foreign direct investment (FDI) in advanced renewable energy technology spillover is promising to improve technological capability and promote China’s energy industry performance growth. In this paper, the impacts of FDI renewable energy technology spillover on China’s energy industry performance are analyzed based on theoretical and empirical studies. Firstly, three hypotheses are proposed to illustrate the relationships between FDI renewable energy technology spillover and three energy industry performances including economic, environmental, and innovative performances. To verify the hypotheses, techniques including factor analysis and data envelopment analysis (DEA) are employed to quantify the FDI renewable energy technology spillover and the energy industry performance of China, respectively. Furthermore, a panel data regression model is proposed to measure the impacts of FDI renewable energy technology spillover on China’s energy industry performance. Finally, energy industries of 30 different provinces in China based on the yearbook data from 2005 to 2011 are comparatively analyzed for evaluating the impacts through the empirical research. The results demonstrate that FDI renewable energy technology spillover has positive impacts on China’s energy industry performance. It can also be found that the technology spillover effects are more obvious in economic and technological developed regions. Finally, four suggestions are provided to enhance energy industry performance and promote renewable energy technology spillover in China.

Suggested Citation

  • Weiwei Liu & Xiandong Xu & Zhile Yang & Jianyu Zhao & Jing Xing, 2016. "Impacts of FDI Renewable Energy Technology Spillover on China’s Energy Industry Performance," Sustainability, MDPI, Open Access Journal, vol. 8(9), pages 1-16, August.
  • Handle: RePEc:gam:jsusta:v:8:y:2016:i:9:p:846-:d:76897
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    References listed on IDEAS

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    Cited by:

    1. Jian Hou & Heng Chen & Jianzhong Xu, 2017. "External Knowledge Sourcing and Green Innovation Growth with Environmental and Energy Regulations: Evidence from Manufacturing in China," Sustainability, MDPI, Open Access Journal, vol. 9(3), pages 1-17, February.

    More about this item

    Keywords

    foreign direct investment (FDI); renewable energy; technology spillover; China’s energy industry performance; panel data regression;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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