Abstract
Under the Belt and Road concepts of mutual benefit and win–win cooperation, China is strengthening its energy cooperation with other countries. We used several econometric models and social network analysis models to study the impacts of China’s outward foreign direct investment (OFDI) on the host and home countries. We first examined China’s OFDI location preference and analysed the effects of OFDI on energy consumption in host countries. Meanwhile, we observed the impact of the reverse spillover effect of OFDI on China’s energy efficiency. The results indicate that (1) the impact of China’s OFDI on energy consumption in host countries has been lower than that on neighbouring countries, and increased significantly after 2014. (2) The space network of energy consumption in Belt and Road countries has a strict hierarchical structure. However, it was disbanded by the Belt and Road policy in 2014. The network centres are situated primarily in Middle Eastern and European countries, and the network’s periphery is mainly in South-East and West Asian countries. (3) The reverse spillover effects of OFDI, FDI, domestic R&D absorptive capacity, human capital, and financial development levels are conducive to improving China’s energy efficiency whereas regional professionalism does the opposite.
Highlights
We used a difference in difference (DID) model to discuss the impact of outward foreign direct investment (OFDI) on the energy consumption of the Belt and Road countries
We established a dynamic panel model and used the system generalised moment method (SYS-GMM) model to estimate the impact of reverse technology spillover effects of OFDI on China’s energy efficiency
OFDI as a starting point, the targets of OFDI and the impacts on each host country’s energy consumption and energy efficiency were studied in three parts
Summary
Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations. The question of who will satisfy China’s energy demands is both a problem and a wake-up call To address these challenges, the Belt and Road Initiative was launched in 2013 [3]. The Belt and Road Initiative was launched in 2013 [3] It has provided new economic growth targets for China and offered new development opportunities for neighbouring countries [4]. The pollution refuge hypothesis has been the focus of controversy, and some countries have even put forward the “environmental threat theory” of China’s Belt and Road policy. Based on these reservations, we discuss the causes and consequences of China’s OFDI from energy cooperation.
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