Unraveling the role of China’s OFDI, institutional difference and B&R policy on energy efficiency : a meta-frontier super-SBM approach

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Author(s)

  • Wasi Ul Hassan Shah
  • Rizwana Yasmeen
  • Muhammad Abdul Kamal
  • Anwar Khan
  • Ihtsham Ul Haq Padda

Related Research Unit(s)

Detail(s)

Original languageEnglish
Journal / PublicationEnvironmental Science and Pollution Research
Online published26 Mar 2022
Publication statusOnline published - 26 Mar 2022

Abstract

Under the Belt and Road initiative, the cooperative network between Chinese firms and participating countries has evolved rapidly to seek new markets for foreign investment. Foreign investment is one of the most effective ways of improving environmental energy efficiency through technology spillover. Therefore, first, this article applies the foreign direct investment theory with an interactive effect of institutional difference on energy efficiency. We employed the meta-frontier super-slacks-based measure approach to find the sampled countries’ environmental energy efficiency. We also divided the study sample into six regions to consider group heterogeneity and the variation in energy efficiency performance in various Belt and Road regions. For the empirical investigation, we applied the generalized method of moments approach. The impact of China’s outward foreign direct investment on energy efficiency is positive in the full sample. Nevertheless, the region-wise study found mixed results regarding China’s outward foreign direct investment to promote energy efficiency and the Belt and Road region. In addition, the study further infers that institutional distance can be the greater impediment to promoting host countries’ efficient energy-based investment.

Research Area(s)

  • A meta-frontier super-SBM, Belt and Road policy, China OFDI, Energy efficiency, Institutional difference

Citation Format(s)

Unraveling the role of China’s OFDI, institutional difference and B&R policy on energy efficiency : a meta-frontier super-SBM approach. / Shah, Wasi Ul Hassan; Hao, Gang; Yasmeen, Rizwana; Kamal, Muhammad Abdul; Khan, Anwar; Padda, Ihtsham Ul Haq.

In: Environmental Science and Pollution Research , 26.03.2022.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review