IDEAS home Printed from https://ideas.repec.org/a/pal/palcom/v11y2024i1d10.1057_s41599-024-02791-2.html
   My bibliography  Save this article

Impact of China’s financial development on the sustainable development goals of the Belt and Road Initiative participating countries

Author

Listed:
  • Chenggang Li

    (Guizhou University of Finance and Economics
    Guizhou University of Finance and Economics)

  • Gang Zhao

    (Guizhou University of Finance and Economics)

  • Keumseok Peter Koh

    (The University of Hong Kong)

  • Zhenci Xu

    (The University of Hong Kong
    HKU Shenzhen Institute of Research and Innovation)

  • Mu Yue

    (Nanyang Technological University)

  • Weiyan Wang

    (New York University)

  • Yuanyuan Tan

    (Guizhou University of Finance and Economics)

  • Liang Wu

    (Guizhou Normal University)

Abstract

China’s Belt and Road Initiative (BRI) aims to strengthen regional economic and policy cooperation and achieve the rapid development among the participating countries. While the impact on the financial development of the economic growth and energy environment of BRI participating countries has garnered close attention among scholars, few studies focus on the impact of financial development on the sustainable development goals (SDGs) of the BRI participating countries. To address this gap, we utilized panel regression models to quantitatively assess the impact of China’s financial development scale, structure, and efficiency on the SDGs of the BRI participating countries, and adopted Geographically and Temporally Weighted Regression (GTWR) model to explore the spatial-temporal effects of China’s financial development scale, structure, and efficiency on the SDGs of the BRI participating countries. Our findings indicate that China’s financial development has significantly promoted the SDGs of the BRI participating countries. This study further reveals that the scale and efficiency of China’s financial development have had a more pronounced impact on the SDGs of Asian countries, low- and middle-income countries, and the Land Silk Road participating countries, compared to those of European countries, high-income countries, and the Maritime Silk Road participating countries, respectively. In contrast, the structure of financial development primarily promotes the SDGs of European and high-income BRI participating countries in the land silk belt. The role of China’s financial development in promoting the SDGs of most BRI participating countries has gradually increased over time. This study provides valuable insights for decision-makers in China to facilitate the sustainable development of BRI participating countries and foster a shared community within the BRI framework.

Suggested Citation

  • Chenggang Li & Gang Zhao & Keumseok Peter Koh & Zhenci Xu & Mu Yue & Weiyan Wang & Yuanyuan Tan & Liang Wu, 2024. "Impact of China’s financial development on the sustainable development goals of the Belt and Road Initiative participating countries," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    • Handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-02791-2
    DOI: 10.1057/s41599-024-02791-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41599-024-02791-2
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41599-024-02791-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Du, Julan & Zhang, Yifei, 2018. "Does One Belt One Road initiative promote Chinese overseas direct investment?," China Economic Review, Elsevier, vol. 47(C), pages 189-205.
    2. Shao, Xu, 2020. "Chinese OFDI responses to the B&R initiative: Evidence from a quasi-natural experiment," China Economic Review, Elsevier, vol. 61(C).
    3. Qiumei Li & Hayat Khan & Zuominyang Zhang & Ling Lin & Ke Huang, 2022. "The Impact of the Belt and Road Initiative on Corporate Excessive Debt Mechanism: Evidence from Difference-in-Difference Equation Model," Sustainability, MDPI, vol. 15(1), pages 1-19, December.
    4. Zhenci Xu & Yingjie Li & Sophia N. Chau & Thomas Dietz & Canbing Li & Luwen Wan & Jindong Zhang & Liwei Zhang & Yunkai Li & Min Gon Chung & Jianguo Liu, 2020. "Impacts of international trade on global sustainable development," Nature Sustainability, Nature, vol. 3(11), pages 964-971, November.
    5. Sadorsky, Perry, 2010. "The impact of financial development on energy consumption in emerging economies," Energy Policy, Elsevier, vol. 38(5), pages 2528-2535, May.
    6. Yuxiang, Karl & Chen, Zhongchang, 2011. "Financial development and environmental performance: evidence from China," Environment and Development Economics, Cambridge University Press, vol. 16(1), pages 93-111, February.
    7. Luuk Elkhuizen & Niels Hermes & Jan Jacobs & Aljar Meesters, 2018. "Financial development, financial liberalization and social capital," Applied Economics, Taylor & Francis Journals, vol. 50(11), pages 1268-1288, March.
    8. Huang, Ying & Xu, Wangtu (Ato), 2021. "Spatial and temporal heterogeneity of the impact of high-speed railway on urban economy: Empirical study of Chinese cities," Journal of Transport Geography, Elsevier, vol. 91(C).
    9. Ivan Timofeev & Yaroslav Lissovolik & Liudmila Filippova, 2017. "Russia's Vision of the Belt and Road Initiative: From the Rivalry of the Great Powers to Forging a New Cooperation Model in Eurasia," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 25(5), pages 62-77, September.
    10. Jianguo Liu, 2014. "Forest Sustainability in China and Implications for a Telecoupled World," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 1(1), pages 230-250, January.
    11. Lv, Chengchao & Shao, Changhua & Lee, Chien-Chiang, 2021. "Green technology innovation and financial development: Do environmental regulation and innovation output matter?," Energy Economics, Elsevier, vol. 98(C).
    12. Huang, Yiping, 2016. "Understanding China's Belt & Road Initiative: Motivation, framework and assessment," China Economic Review, Elsevier, vol. 40(C), pages 314-321.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alfredo Schclarek & Jiajun Xu, 2021. "Panda Bond Financing of the Belt & Road Initiative: An Analysis of Monetary Mechanisms and Financial Risks," Asociación Argentina de Economía Política: Working Papers 4519, Asociación Argentina de Economía Política.
    2. Cai, Guowei & Zhang, Xuejiao & Yang, Hao, 2023. "Capacity utilization shifting or resource-seeking? Benefits for Chinese enterprises participating in the belt and road initiative," Emerging Markets Review, Elsevier, vol. 54(C).
    3. Keyi Duan & Mingyao Cao & Nurhafiza Abdul Kader Malim & Yan Song, 2022. "Nonlinear Relationship between Financial Development and CO 2 Emissions—Based on a PSTR Model," IJERPH, MDPI, vol. 20(1), pages 1-15, December.
    4. Shiwen Liu & Hongyuan Li, 2020. "Does Financial Development Increase Urban Electricity Consumption? Evidence from Spatial and Heterogeneity Analysis," Sustainability, MDPI, vol. 12(17), pages 1-17, August.
    5. Koffi Dumor & Li Yao, 2019. "Estimating China’s Trade with Its Partner Countries within the Belt and Road Initiative Using Neural Network Analysis," Sustainability, MDPI, vol. 11(5), pages 1-22, March.
    6. Filip Beule & Haiyan Zhang, 2022. "The impact of government policy on Chinese investment locations: An analysis of the Belt and Road policy announcement, host-country agreement, and sentiment," Journal of International Business Policy, Palgrave Macmillan, vol. 5(2), pages 194-217, June.
    7. Damoah, Kaku Attah & Giovannetti, Giorgia & Marvasi, Enrico, 2022. "Do country centrality and similarity to China matter in the allocation of belt and road projects?," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 660-674.
    8. Joanna Wolszczak-Derlacz & Yuxin Lu, 2022. "The role of the One-Belt One-Road initiative in China’s exports and global value chains," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(2), pages 317-341, June.
    9. Mingchun Cao & Ilan Alon, 2020. "Intellectual Structure of the Belt and Road Initiative Research: A Scientometric Analysis and Suggestions for a Future Research Agenda," Sustainability, MDPI, vol. 12(17), pages 1-40, August.
    10. Jin-Young Jung & Wei Wang & Sung-Woo Cho, 2020. "The Role of Confucius Institutes and One Belt, One Road Initiatives on the Values of Cross-Border M&A: Empirical Evidence from China," Sustainability, MDPI, vol. 12(24), pages 1-20, December.
    11. Dong-Hyeon Kim & Yi-Chen Wu & Shu-Chin Lin, 2022. "Carbon dioxide emissions, financial development and political institutions," Economic Change and Restructuring, Springer, vol. 55(2), pages 837-874, May.
    12. Hongxing Cao & Huirong Zhan & Yuan Wang & Ziyao Wei, 2021. "Sino-Bulgarian Economic Relations in the Post Pandemic World," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 177-196, July.
    13. Usman Mehmood & Salman Tariq & Zia ul Haq & Ephraim Bonah Agyekum & Solomon Eghosa Uhunamure & Karabo Shale & Hasan Nawaz & Shafqat Ali & Ammar Hameed, 2022. "Financial Institutional and Market Deepening, and Environmental Quality Nexus: A Case Study in G-11 Economies Using CS-ARDL," IJERPH, MDPI, vol. 19(19), pages 1-19, September.
    14. Muhammad Awais Baloch & Danish, 2022. "CO2 emissions in BRICS countries: what role can environmental regulation and financial development play?," Climatic Change, Springer, vol. 172(1), pages 1-14, May.
    15. Wang, You & Gong, Xu, 2020. "Does financial development have a non-linear impact on energy consumption? Evidence from 30 provinces in China," Energy Economics, Elsevier, vol. 90(C).
    16. Peter J. Buckley, 2018. "Towards a theoretically-based global foreign direct investment policy regime," Journal of International Business Policy, Palgrave Macmillan, vol. 1(3), pages 184-207, December.
    17. Holger Görg & Haiou Mao, 2022. "Does the belt and road initiative stimulate Chinese exports? Evidence from micro data," The World Economy, Wiley Blackwell, vol. 45(7), pages 2084-2100, July.
    18. Muhammad, Shahbaz, 2012. "Multivariate granger causality between CO2 Emissions, energy intensity, financial development and economic growth: evidence from Portugal," MPRA Paper 37774, University Library of Munich, Germany, revised 31 Mar 2012.
    19. Hsu, Ching-Chi & Chien, FengSheng, 2022. "The study of co-movement risk in the context of the Belt and Road Initiative," International Review of Economics & Finance, Elsevier, vol. 80(C), pages 1130-1152.
    20. Ma, Shengnan, 2022. "Growth effects of economic integration: New evidence from the Belt and Road Initiative," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 753-767.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-02791-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: https://www.nature.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.