Exploration of the Impact of China’s Outward Foreign Direct Investment (FDI) on Economic Growth in Asia and North Africa along the Belt and Road (B&amp;R) Initiative

Abdulsalam, Alnoah; Xu, Helian; Ameer, Waqar; Abdo, AL-Barakani; Xia, Jiejin

doi:10.3390/su13041623

Cited by 19 publications

(14 citation statements)

References 63 publications

(81 reference statements)

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“…Despite the havoc and global investment contraction caused by the novel coronavirus disease (COVID-19) pandemic, the FDI inflow into China reached a record high of 999.98 billion yuan ($154.4 billion) in 2020, up to 19% of the global scale, surpassing the United States as the largest foreign capital inflow country [1]. FDI inflow contributes a lot to economic growth of host country in introducing advanced technology and mature management experience, also helping host country to integrate into the global market network [2][3][4][5]. Since the contribution of FDI to economic growth has been widely recognized, it is of great practical significance to further study how to promote FDI inflow in order to achieve sustainable economic growth of China.…”

Section: Introductionmentioning

confidence: 99%

Influence of Exchange Rate on Foreign Direct Investment Inflows: An Empirical Analysis Based on Co-Integration and Granger Causality Test

Tan

Gashaw

2021

Mathematical Problems in Engineering

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Although it is widely recognized that Foreign Direct Investment (FDI) inflows have a dominant effect on economic growth of host countries, the determinants of FDI inflows are still unclear. Especially, about the effect of exchange rate on FDI inflow, the results reached by scholars vary across countries or regions. It is of great practical and theoretical significance to explore the influencing effects of exchange rate on FDI inflow and identify the mechanisms that underlie them in close association with regional economic characters so as to help local government implement targeted government policies to achieve sustainable FDI inflow and sustainable economic growth. For this purpose, the influencing effects and the influencing mechanisms of the exchange rate on FDI inflows are investigated for Zhejiang province, China, over 1985–2019 by employing the co-integration tests, vector error correction models, Granger causality tests, and impulse response tests. Empirical results indicate that there are long-term stable and unidirectional causal relationship between the exchange rate and FDI inflow. Continuous appreciation of RMB against USD discourages FDI inflow. The mechanism which underlies the long-term relationship is the wealth effect, rather than the cost effect or the demand effect. By contrast, in the short run, neither the exchange rate nor the three influencing mechanism has a significant impact on FDI inflow. These results suggest policy recommendations for improving FDI by accumulating human capital and improving infrastructure. These findings are also applicable for other countries or regions with similar economic characters.

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Section: Introductionmentioning

confidence: 99%

Influence of Exchange Rate on Foreign Direct Investment Inflows: An Empirical Analysis Based on Co-Integration and Granger Causality Test

Tan

Gashaw

2021

Mathematical Problems in Engineering

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“…According to the Ministry of Commerce of China, from 2014 to 2017, China invested a total of 542.6 ($ 100 million) in 125.4, 148.2, 145.3, 3, 123.7.4 (Bhaumik & Co, 2011). Many of the Chinese investments are in the form of infrastructure, services, and energy in trade openness (Abdulsalam et al, 2021). The lead Chinese investor (POWERCHINA Ltd) is investing US$250 million into a US$2 billion venture in the CPEC, one of the major corridors (Hamdani, n.d.) Improvement of regional infrastructure and betterment of connectivity in West Asia will give China access to oil resources and gas resources to reach markets in Europe and Africa.…”

Section: Economic Overviewmentioning

confidence: 99%

Influence of Belt & Road on consensual Trade with Path to Structural Trade Model

Ramzan

Ali

Mehar

et al. 2023

JSSR

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Xi Jinping, the president of China, announced Belt and Road project. A large geographic area of the world, encompassing America, Asia, and Africa, was to be developed economically and through increased bilateral trade. BRI covers 64 per cent of the global population and 30 per cent of the international GDP. Analyses consequences of Belt and Road Initiative-driven changes to marine networks on bilateral trade movements (BRI). The gravity model approach was applied for results to study the significance of China through "Belt and Road project" (BRI) trade through various quantitative techniques, including (POLS), (FE), and applied to look at the hypothesized impact of bilateral trade of one Country with other countries. To study the importance of BRI on the two-way trade of China with 29 trading partners, panel data from 20 years (2000-2019) of data were obtained. China has a very good impact on international trade, and its GDP per capita is shown to be highly positive. The relationship between the two is very significant and positive, as indicated. Results indicate that as trade partners' countries' populations have grown, their economies have also grown.

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“…Wu et al (2020) analyzed the relationship between China’s FDI and economic growth using city-level data in China. Similarly, Abdulsalam et al (2021) analyzed the relationship between China’s foreign direct investment and economic growth in 25 countries of Asia. But many researchers have given less attention to the environmental effect of China’s foreign direct investment.…”

Section: Introductionmentioning

confidence: 99%

Environmental Effects of China’s Overseas Direct Investment in South Asia

et al. 2022

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This paper attempts to analyze the effects of China’s outward direct investment on environmental pollution in selected South Asian countries from 2004 to 2019 under framework of environmental Kuznet curve hypothesis. This empirical work is accomplished through fully modified ordinary least square. The findings of the full panel of fully modified ordinary least square indicates that China’s outward direct investment significantly spurs carbon emissions by (9.9%), which destroy the environment quality in the region. However, the estimated coefficients of the full panel of the fully modified ordinary least square indicates that (+) and (−) values of GDP and GDP square validate the environmental Kuznet curve hypothesis existence in the South Asia economies. Furthermore, when taking the individual countries, the environment consequences, individual characteristics of the countries and the GDP growth shows various temporal pattern of KEC hypothesis. Like in India there exist inverted U-shape curve, while Pakistan and Nepal manifest U-shape curve, whereas Bangladesh shows N-shape curve. Furthermore, this paper has identified bidirectional causality between economic growth, energy, financial development and carbon emissions. The empirical evidence implies that when governments consider foreign direct investment, they should priorities environmental protection mechanisms.

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Exploration of the Impact of China’s Outward Foreign Direct Investment (FDI) on Economic Growth in Asia and North Africa along the Belt and Road (B&R) Initiative

Cited by 19 publications

References 63 publications

Influence of Exchange Rate on Foreign Direct Investment Inflows: An Empirical Analysis Based on Co-Integration and Granger Causality Test

Influence of Exchange Rate on Foreign Direct Investment Inflows: An Empirical Analysis Based on Co-Integration and Granger Causality Test

Influence of Belt & Road on consensual Trade with Path to Structural Trade Model

Environmental Effects of China’s Overseas Direct Investment in South Asia

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