Can greater openness improve green economy efficiency of countries along the Belt and Road Initiative?

Abstract

Openness is the core concept of the Belt and Road initiative (BRI), which plays a significant role in promoting the sustainable economic development of countries along the BRI. This study uses the entropy method to measure openness based on six dimensions: trade, investment, finance, tourism, technology, and information. Simultaneously, a super-SBM model with undesired output is proposed to measure green economy efficiency (GEE). Using the panel data of 66 countries along the BRI from 2008 to 2019, we empirically examine the impact of openness on GEE. The results are as follows: (1) The openness level of countries along the BRI is generally increasing, but the relative differences between countries tend to widen. (2) Openness has a significant U-shaped nonlinear effect on GEE, and the conclusion is still valid after considering the robustness test; (3) The spatial econometric model shows that openness not only affects the GEE of the local country, but also has a spillover effect on neighboring countries. Therefore, we believe that BRI countries should strengthen policy communication, break down border barriers, actively promote the orderly flow and diffusion of openness elements, and pay attention to the quantity and quality of openness development, which is key to the high-quality construction of the BRI.