The dynamic relationship between trade openness, foreign direct investment, capital formation, and industrial economic growth in China: new evidence from ARDL bounds testing approach

Chen, Pengyu

doi:10.1057/s41599-023-01660-8

Cited by 15 publications

(5 citation statements)

References 55 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The method also explores relationships among the variables in a single equation, whereas traditional cointegration techniques use multiple equations to capture the interdependencies among variables (Ozturk and Acaravci 2011 ). The highlighted reasons make the ARDL model advantageous because it has a flexible specification and computational efficiency (Hao 2023 ). In the first step, the ARDL technique estimates the long-run cointegration among the variables, whereas in the next stage, it estimates long-run coefficients (Bhattacharjee and Das 2023 ; Bunnag 2023 ).…”

Section: Methodsmentioning

confidence: 99%

Financial health and economic growth responsiveness as solution to environmental degradation in Pakistan

Golo,

Han,

Balsalobre-Lorente

et al. 2024

Environ Sci Pollut Res

View full text Add to dashboard Cite

This study analyses the impact of GDP per capita, domestic credit, savings, and population on the environment in Pakistan from 1995 to 2019. The country has consistently been ranked eighth, fifth, and eight as an environmentally vulnerable nation from 1998 to 2017, 1999 to 2018, and 2000 to 2019, respectively. Therefore, the study explores the role of environmental awareness as a potential strategy for making peace with nature. Findings of the ARDL bounds testing approach confirm the long-run cointegration among variables of concern. In further assessment, the study determines that increased per capita income is detrimental to environmental quality in the long run. However, in the short run, it shows a favourable impact. On the other hand, domestic credit worsens the environment in the long and short runs. However, savings are positively insignificant in this regard. Furthermore, the total population significantly harms the environment in the long and short run. Fortunately, environmental awareness has emerged as a key solution to environmental degradation in Pakistan. Findings show that an increase in the dissemination of environmental awareness through the Internet, mobile, and landline phones, as well as by increasing education expenditures, mitigates the populations’ detrimental impact on the environment and improves environmental quality in the long run. Graphical Abstract

show abstract

Section: Methodsmentioning

confidence: 99%

Financial health and economic growth responsiveness as solution to environmental degradation in Pakistan

Golo,

Han,

Balsalobre-Lorente

et al. 2024

Environ Sci Pollut Res

View full text Add to dashboard Cite

show abstract

“…The study utilized the autoregressive distributed lag (ARDL) bound testing method developed by Pesaran et al [47], which aids in determining the presence of a long-run relationship in the series. The ARDL approach has been widely adopted by researchers in a single-equation total growth model, as evidenced by studies conducted by Thobekile et al [48], Rathnayaka et al [49], Hao [50], Khalid [51], and Ari et al [52], among others, to explore the relationship between FDI, trade openness, and other variables' impact on economic growth. Building upon existing literature, this current study utilized data from the World Development Indicators (WDI) on gross domestic product per capita (GDPpc) measured in thousands of United States dollars (USD) using 2015 as the based year, net foreign direct investment inflows (% share of GDP), external debt representing foreign loans measured in billions USD, trade openness (exports plus imports ratio to GDP), and unemployment rate measured in percentage.…”

Section: Data Source and Econometric Approachmentioning

confidence: 99%

The Dynamic Effect of Trade Openness, Debt, and Foreign Investment in Ghana’s Economy: An ARDL Bound Testing Approach

Yeboah,

Lamin

2024

IJEMS

View full text Add to dashboard Cite

The impact of macroeconomic factors offers insight into the performance of an economy. This study investigates the dynamic short- and long-term effect of trade openness, external debt, and foreign direct investment (FDI) within Ghana's economy. Utilizing Autoregressive Distributed Lag (ARDL) bound testing and Granger causality analysis, the study examines data spanning from 1991 to 2022. The results of the ARDL cointegration test reveal a long-term relationship among the variables. However, in the short term, the findings present a mixed effect of FDI and trade openness, with both positive and negative impacts. In the long run, FDI and external debt exhibit a positive influence, whereas trade openness appears to impede economic growth. Furthermore, the Granger causality test identifies a unidirectional causality relationship between the variables and economic growth. The study suggests that the government implement investment-oriented and trade policies to stimulate economic growth.

show abstract

“…4. The empirical analysis portion needs (Hao, 2023b;Matar et al, 2023). Likewise, EG-POS and EG-NEG have coefficients of 0.025 and 0.048 and are significant at the 5% and 10% levels, respectively.…”

Section: Empirical Findings and Explanationsmentioning

confidence: 99%

Green finance and foreign direct investment–environmental sustainability nexuses in emerging countries: new insights from the environmental Kuznets curve

Qadri

Shi

Rahman

et al. 2023

Front. Environ. Sci.

View full text Add to dashboard Cite

The primary objective of the present study is to identify the asymmetric relationship between green finance, trade openness, and foreign direct investment with environmental sustainability. The existing research utilizes the asymmetric approach to evaluate annual data from 1980 to 2021. The findings of this study show heterogeneous results. Therefore, the outcomes of the study confirm the nonlinear (NARDL) association between the variables in Pakistan. Moreover, the study describes the positive shock of foreign direct investment (FDI) as a significant and positive relationship with environmental degradation, while the negative shock of FDI shows a negative and significant relationship with the environment. Furthermore, the study scrutinizes the positive shock of green finance as a significant and negative relationship with environmental degradation; the negative shocks also show a negative relationship with environmental degradation in Pakistan. In addition, the consequences of the study suggest that the government should implement taxes on foreign investment and that investors should use renewable energy to produce goods. Furthermore, the results suggest that the government should utilize fiscal policy and fiscal funds to enhance carbon-free projects. Moreover, green securities should be used for green technologies. However, Pakistan can control its carbon emissions and achieve the target of a sustainable environment. Therefore, Pakistan’s government should stabilize its financial markets and introduce carbon-free projects. Furthermore, the main quantitative achievement according to the outcomes suggests that policymakers make policies in which they suggest to the government to control foreign investment that causes carbon emissions because of trade openness and also invest the funds in renewable energy, which helps to control the carbon emissions.

show abstract

The dynamic relationship between trade openness, foreign direct investment, capital formation, and industrial economic growth in China: new evidence from ARDL bounds testing approach

Cited by 15 publications

References 55 publications

Financial health and economic growth responsiveness as solution to environmental degradation in Pakistan

Financial health and economic growth responsiveness as solution to environmental degradation in Pakistan

The Dynamic Effect of Trade Openness, Debt, and Foreign Investment in Ghana’s Economy: An ARDL Bound Testing Approach

Green finance and foreign direct investment–environmental sustainability nexuses in emerging countries: new insights from the environmental Kuznets curve

Contact Info

Product

Resources

About