Unveiling new insights into China's marine ecosystem: Exploring the fishing grounds load capacity curve

Abstract

As one of the most swiftly industrializing countries in the world, China is struggling with significant challenges facing its environment, in particular in its marine ecosystems. Hence, economic activities increasingly are influencing these ecosystems, requiring their study crucial for sustainable development. Therefore, it is paramount perceiving the potential implications of economic growth and foreign direct investment (FDI) for marine health. The study aims to explore the impact of economic growth and FDI on China's marine ecosystem during 1980–2019, examining the probable intersections of economic advancement, FDI, and marine sustainability, the study used a novel nonlinear Fourier Autoregressive Distributed Lags (FARDL) approach. Notably, the paper confirms the Fishing Grounds Load Capacity Curve (FGLCC) hypothesis, demonstrating a nonlinear affiliation among income levels and maritime conditions. Moreover, the results point out that FDI initially worsens marine conditions until a certain threshold is reached, marking a pivotal change in the influence of FDI from environmental degradation to improvement. In addition, the study underscores the critical need for policies that balance economic development with Chines' marine environmental sustainability, emphasizing the importance of intended regulatory and strategic interventions. These insights are vital for enhancing marine requirements and ensuring well-being and health of future generations, providing significant implications maritime policymakers in addressing marine environmental challenges amid economic development.