IDEAS home Printed from https://ideas.repec.org/a/sae/engenv/v34y2023i7p2642-2667.html
   My bibliography  Save this article

Dynamic linkages between China’s OFDI, transport, and green economic growth: Empirical evidence from the B&R countries

Author

Listed:
  • Liguo Zhang
  • Cuiting Jiang
  • Xiang Cai
  • Jun Wu

Abstract

China’s outward foreign direct investment (OFDI) provides a window of opportunity for the Belt and Road (B&R) countries to solve their transportation challenges and achieve green economic growth. This study examines the causal relationship between China’s OFDI, transport, and green economic growth in 63 B&R countries from 2005 to 2019 using system GMM estimators. The empirical results indicate that there is a multifarious relationship between these factors. China’s OFDI can effectively facilitate the transport infrastructure construction of host countries, which will spur green economic growth. Moreover, the B&R countries with transport and green economic growth gap are more likely to contribute to China’s OFDI “attractiveness.†These conclusions provide a policy basis for the B&R countries to attract China’s OFDI, develop adequate transportation infrastructure, and enhance sustainable green economic growth.

Suggested Citation

  • Liguo Zhang & Cuiting Jiang & Xiang Cai & Jun Wu, 2023. "Dynamic linkages between China’s OFDI, transport, and green economic growth: Empirical evidence from the B&R countries," Energy & Environment, , vol. 34(7), pages 2642-2667, November.
    • Handle: RePEc:sae:engenv:v:34:y:2023:i:7:p:2642-2667
    DOI: 10.1177/0958305X221115094
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0958305X221115094
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0958305X221115094?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
    ---><---

    References listed on IDEAS

    as
    1. J. A. John & N. R. Draper, 1980. "An Alternative Family of Transformations," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 29(2), pages 190-197, June.
    2. de Soyres, François & Mulabdic, Alen & Ruta, Michele, 2020. "Common transport infrastructure: A quantitative model and estimates from the Belt and Road Initiative," Journal of Development Economics, Elsevier, vol. 143(C).
    3. Evans, Paul & Karras, Georgios, 1994. "Is government capital productive? Evidence from a panel of seven countries," Journal of Macroeconomics, Elsevier, vol. 16(2), pages 271-279.
    4. Lin, Boqiang & Zhu, Junpeng, 2019. "Fiscal spending and green economic growth: Evidence from China," Energy Economics, Elsevier, vol. 83(C), pages 264-271.
    5. Dong-hyun Oh, 2010. "A global Malmquist-Luenberger productivity index," Journal of Productivity Analysis, Springer, vol. 34(3), pages 183-197, December.
    6. Stephane Straub, 2011. "Infrastructure and Development: A Critical Appraisal of the Macro-level Literature," Journal of Development Studies, Taylor & Francis Journals, vol. 47(5), pages 683-708.
    7. Richard Blundell & Stephen Bond, 2000. "GMM Estimation with persistent panel data: an application to production functions," Econometric Reviews, Taylor & Francis Journals, vol. 19(3), pages 321-340.
    8. Han, Lei & Han, Botang & Shi, Xunpeng & Su, Bin & Lv, Xin & Lei, Xiao, 2018. "Energy efficiency convergence across countries in the context of China’s Belt and Road initiative," Applied Energy, Elsevier, vol. 213(C), pages 112-122.
    9. Gene M. Grossman & Elhanan Helpman, 1991. "Quality Ladders in the Theory of Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(1), pages 43-61.
    10. Samir, Saidi & Shahbaz, Muhammad & Akhtar, Pervaiz, 2018. "The Long-Run Relationship between Transport Energy Consumption and Transport Infrastructure on Economic Growth in MENA Countries," MPRA Paper 85037, University Library of Munich, Germany, revised 06 Mar 2018.
    11. Barro, Robert J & Sala-i-Martin, Xavier, 1997. "Technological Diffusion, Convergence, and Growth," Journal of Economic Growth, Springer, vol. 2(1), pages 1-26, March.
    12. Lauren A. Johnston, 2019. "The Belt and Road Initiative: What is in it for China?," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 6(1), pages 40-58, January.
    13. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LLC, vol. 9(1), pages 86-136, March.
    14. Prema-chandra Athukorala, 2009. "Trends and Patterns of Foreign Direct Investments In Asia: A Comparative Perspective," Departmental Working Papers 2009-08, The Australian National University, Arndt-Corden Department of Economics.
    15. Liu Haiyue & Aqsa Manzoor, 2020. "The impact of OFDI on the performance of Chinese firms along the ‘Belt and Road’," Applied Economics, Taylor & Francis Journals, vol. 52(11), pages 1219-1239, March.
    16. Chengqi Wang & Li Yu, 2007. "Do spillover benefits grow with rising foreign direct investment? An empirical examination of the case of China," Applied Economics, Taylor & Francis Journals, vol. 39(3), pages 397-405.
    17. Wei Wang & Li Huang & Jian Gu & Liupeng Jiang, 2019. "Green port project scheduling with comprehensive efficiency consideration," Maritime Policy & Management, Taylor & Francis Journals, vol. 46(8), pages 967-981, November.
    18. Neha Saini & Monica Singhania, 2018. "Determinants of FDI in developed and developing countries: a quantitative analysis using GMM," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 45(2), pages 348-382, May.
    19. Simon Shen & Wilson Chan, 2018. "A comparative study of the Belt and Road Initiative and the Marshall plan," Palgrave Communications, Palgrave Macmillan, vol. 4(1), pages 1-11, December.
    20. Sophia Dimelis, 2005. "Spillovers from foreign direct investment and firm growth: technological, financial and market structure effects," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 12(1), pages 85-104.
    21. Sunde, Tafirenyika, 2017. "Foreign direct investment, exports and economic growth: ADRL and causality analysis for South Africa," Research in International Business and Finance, Elsevier, vol. 41(C), pages 434-444.
    22. Wang, Xueqin & Wong, Yiik Diew & Yuen, Kum Fai & Li, Kevin X., 2020. "Environmental governance of transportation infrastructure under Belt and Road Initiative: A unified framework," Transportation Research Part A: Policy and Practice, Elsevier, vol. 139(C), pages 189-199.
    23. Otto, Glenn D. & Voss, Graham M., 1998. "Is public capital provision efficient?," Journal of Monetary Economics, Elsevier, vol. 42(1), pages 47-66, June.
    24. Reilly, John M., 2012. "Green growth and the efficient use of natural resources," Energy Economics, Elsevier, vol. 34(S1), pages 85-93.
    25. Sohag, Kazi & Taşkın, F. Dilvin & Malik, Muhammad Nasir, 2019. "Green economic growth, cleaner energy and militarization: Evidence from Turkey," Resources Policy, Elsevier, vol. 63(C), pages 1-1.
    26. Heid, Benedikt & Langer, Julian & Larch, Mario, 2012. "Income and democracy: Evidence from system GMM estimates," Economics Letters, Elsevier, vol. 116(2), pages 166-169.
    27. David Roodman, 2006. "How to Do xtabond2," North American Stata Users' Group Meetings 2006 8, Stata Users Group.
    28. Ahn, Seung C. & Gadarowski, Christopher, 2004. "Small sample properties of the GMM specification test based on the Hansen-Jagannathan distance," Journal of Empirical Finance, Elsevier, vol. 11(1), pages 109-132, January.
    29. Yu, Linhui & Zhao, Dan & Niu, Haixia & Lu, Futao, 2020. "Does the belt and road initiative expand China's export potential to countries along the belt and road?," China Economic Review, Elsevier, vol. 60(C).
    30. Julian Donaubauer & Birgit E. Meyer & Peter Nunnenkamp, 2016. "A New Global Index of Infrastructure: Construction, Rankings and Applications," The World Economy, Wiley Blackwell, vol. 39(2), pages 236-259, February.
    31. Niels Hermes & Robert Lensink, 2003. "Foreign direct investment, financial development and economic growth," Journal of Development Studies, Taylor & Francis Journals, vol. 40(1), pages 142-163.
    32. Fernando Ascensão & Lenore Fahrig & Anthony P. Clevenger & Richard T. Corlett & Jochen A. G. Jaeger & William F. Laurance & Henrique M. Pereira, 2018. "Environmental challenges for the Belt and Road Initiative," Nature Sustainability, Nature, vol. 1(5), pages 206-209, May.
    33. Liang, Yutian & Zhou, Keyang & Li, Xun & Zhou, Zhengke & Sun, Wei & Zeng, Jiaqi, 2020. "Effectiveness of high-speed railway on regional economic growth for less developed areas," Journal of Transport Geography, Elsevier, vol. 82(C).
    34. Jonathan Batten & Xuan Vinh Vo, 2009. "An analysis of the relationship between foreign direct investment and economic growth," Applied Economics, Taylor & Francis Journals, vol. 41(13), pages 1621-1641.
    35. Alam, Khalid Mehmood & Li, Xuemei & Baig, Saranjam & Ghanem, Osman & Hanif, Salman, 2021. "Causality between transportation infrastructure and economic development in Pakistan: An ARDL analysis," Research in Transportation Economics, Elsevier, vol. 88(C).
    36. Prema-chandra Athukorala, 2009. "Trends and Patterns of Foreign Direct Investments in Asia," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 3(4), pages 365-408, October.
    37. Jiang, Yonglei & Sheu, Jiuh-Biing & Peng, Zixuan & Yu, Bin, 2018. "Hinterland patterns of China Railway (CR) express in China under the Belt and Road Initiative: A preliminary analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 119(C), pages 189-201.
    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. Rehman, Faheem Ur & Khan, Muhammad Asif & Khan, Muhammad Atif & Pervaiz, Khansa & Liaqat, Idrees, 2020. "The causal, linear and nonlinear nexus between sectoral FDI and infrastructure in Pakistan: Using a new global infrastructure index," Research in International Business and Finance, Elsevier, vol. 52(C).
    2. Yuxin Lu & Joanna Wolszczak‐Derlacz, 2024. "The Belt and Road Initiative and export variety: 1996–2019," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 38(1), pages 171-203, May.
    3. Imen Mohamed Sghaier, 2020. "Does Financial Development Affect the Economic Growth Gains from Trade Openness?," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 4, pages 666-682, December.
    4. Meschi, Elena & Taymaz, Erol & Vivarelli, Marco, 2011. "Trade, technology and skills: Evidence from Turkish microdata," Labour Economics, Elsevier, vol. 18(S1), pages 60-70.
    5. Francesco Bogliacino & Marco Vivarelli, 2012. "The Job Creation Effect Of R&D Expenditures," Australian Economic Papers, Wiley Blackwell, vol. 51(2), pages 96-113, June.
    6. Onafowora, Olugbenga A. & Owoye, Oluwole, 2024. "Trade openness, governance quality, and economic growth in Latin America and the Caribbean," International Economics, Elsevier, vol. 179(C).
    7. Nguyen Phuc Canh & Nguyen Thanh Binh & Su Dinh Thanh & Christophe Schinckus, 2020. "Determinants of foreign direct investment inflows: The role of economic policy uncertainty," International Economics, CEPII research center, issue 161, pages 159-172.
    8. Vincent Van Roy & Daniel Vertesy & Marco Vivarelli, 2015. "The Employment Impact of Innovation: Evidence from European Patenting Companies," DISCE - Working Papers del Dipartimento di Politica Economica ispe0075, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    9. Quichun He & Meng Sun & Heng-Fu Zou, 2013. "Financial deregulation, absorptive capability, technology diffusion and growth: Evidence from Chinese panel data," Journal of Applied Economics, Universidad del CEMA, vol. 16, pages 275-302, November.
    10. Le, Thi Phuong Vy & Phan, Thi Bich Nguyet, 2017. "Capital structure and firm performance: Empirical evidence from a small transition country," Research in International Business and Finance, Elsevier, vol. 42(C), pages 710-726.
    11. Grigoli, Francesco & Mills, Zachary, 2011. "Do high and volatile levels of public investment suggest misconduct ? the role of institutional quality," Policy Research Working Paper Series 5735, The World Bank.
    12. Wang, Xueqin & Wong, Yiik Diew & Yuen, Kum Fai & Li, Kevin X., 2020. "Environmental governance of transportation infrastructure under Belt and Road Initiative: A unified framework," Transportation Research Part A: Policy and Practice, Elsevier, vol. 139(C), pages 189-199.
    13. Benzaim, Samia & Ftiti, Zied & Khedhaouria, Anis & Djermane, Rebai, 2023. "US foreign investments: Technology transfer, relative backwardness, and the productivity growth of host countries," The Quarterly Review of Economics and Finance, Elsevier, vol. 87(C), pages 275-295.
    14. Ayhan Kose, M. & Prasad, Eswar S. & Taylor, Ashley D., 2011. "Thresholds in the process of international financial integration," Journal of International Money and Finance, Elsevier, vol. 30(1), pages 147-179, February.
    15. Juan Federico & Joan-Lluis Capelleras, 2015. "The heterogeneous dynamics between growth and profits: the case of young firms," Small Business Economics, Springer, vol. 44(2), pages 231-253, February.
    16. Martin Bijsterbosch & Marcin Kolasa, 2010. "FDI and productivity convergence in Central and Eastern Europe: an industry-level investigation," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(4), pages 689-712, January.
    17. Shota Moriwaki, 2019. "Historical evolution of modified technology in silk-reeling industry during the early Meiji era: case of Gifu," Asia-Pacific Journal of Regional Science, Springer, vol. 3(2), pages 395-420, June.
    18. Tsun Se Cheong & Yanrui Wu, 2013. "Globalization and Regional Inequality," Economics Discussion / Working Papers 13-10, The University of Western Australia, Department of Economics.
    19. Zhang, Yilin & Zhang, Anming & Wang, Kun & Zheng, Shiyuan & Yang, Hangjun & Hong, Junjie, 2023. "Impact of CR Express and intermodal freight transport competition on China-Europe Route: Emission and welfare implications," Transportation Research Part A: Policy and Practice, Elsevier, vol. 171(C).
    20. Mohammad Usama Toseef & Gail A Jensen & Wassim Tarraf, 2019. "How Effective Is Foreign Aid at Improving Health Outcomes in Recipient Countries?," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 47(4), pages 429-444, December.

    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:sae:engenv:v:34:y:2023:i:7:p:2642-2667. 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: SAGE Publications (email available below). General contact details of provider: .

    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.