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

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  • 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
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