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Depending on the trading modes, the effect of Outward Foreign Direct Investment (OFDI) on the manufacturing industry's position within the global value chain (GVC) may differ considerably. This paper examines the GVC position of China's manufacturing industry from 2003 to 2018, specifically focusing on the general trade and processing trade. Drawing upon this premise, this paper analyzes the effect and mechanism by which OFDI influences the GVC position of China's manufacturing industry. The result demonstrates that: (1) China's processing trade manufacturing industry has a much lower GVC position than general trade manufacturing industry. The GVC position of China's general trade manufacturing industry rose from 2.76 to 2.90 from 2003 to 2018, while processing trade manufacturing industry remained around 1.93. (2) OFDI boosts the GVC position of general trade manufacturing industry through facilitating reverse technology spillover, inducing industry structure upgrading, and enabling export scale expansion. (3) OFDI hinders the GVC position growth of processing trade manufacturing industry. The research findings offer theoretical backing for China to develop OFDI strategies that are tailored to different trading modes within the new framework of dual circulation. These strategies aim to facilitate the transformation and advancement of the manufacturing industry, as well as the growth of the GVC position. [ABSTRACT FROM AUTHOR]

Improving green innovation efficiency (GIE) is the key to achieve high-quality economic development in China, and the introduction of foreign direct investment (FDI) has become an important path choice to promote the GIE. Based on the data of 30 provinces in China, this paper explores the linear and nonlinear effects of FDI on GIE from both quantity and quality perspectives, and further analyzes the mediating role of environmental regulation level. The results show that: (1) From 2011 to 2020, the GIE of all provinces in China generally shows an upward trend. (2) The quantity and quality of FDI have a significant positive impact on the improvement of GIE in China's provinces, and this impact has regional heterogeneity. (3) The quantity and quality of FDI can promote the improvement of GIE in China through the level of environmental regulation (ER). (4) With the level of knowledge accumulation and GIE as the threshold variables, the quantity and quality of FDI have a single threshold effect on the GIE of China's provinces. The conclusions of this study provide some policy implications for local governments to make full use of FDI to perform green innovation activities. [ABSTRACT FROM AUTHOR]

More and more Chinese enterprises have participated in the Belt and Road initiative (BRI) since its launch in 2013. However, have they all actually benefited? Which companies otherwise have benefited most from the plan? To answer these questions, this paper analyzes the impact of the BRI on Chinese enterprises. Among several findings, it reveals that the performance of companies remained low even though the initiative policy initially stimulated performance, the performance of enterprises depends on the geographical location of enterprises and that the returns of China's outward foreign direct investment in various industries became more volatile with only the mining industry enjoying better returns. Thus, the paper shows that the BRI offers Chinese enterprises opportunities but also brings challenges for companies to optimize the allocation of their resources and improve the performance of their investments. [ABSTRACT FROM AUTHOR]

Foreign Direct Investment (FDI) is an important part of China's new "double-cycle" development pattern. Among the many factors affecting FDI, will the aging population have an impact on manufacturing, the key industry for FDI? This paper examines the direct and indirect effects of an aging population on FDI using panel data from 27 manufacturing sub-industries in China between 2005 and 2020. It is found that (1) the deepening of the population's aging negatively affects FDI inflows and this result continues to hold after a series of robustness tests. (2) Using labor quantity and labor cost as mediating variables, it is found that the population's aging indirectly affects FDI by reducing labor quantity and increasing labor cost. (3) The heterogeneity analysis study finds that the deepening of the population's aging significantly inhibits FDI in labor-intensive and capital-intensive industries among manufacturing sub-industries, and the inhibitory effect on FDI in technology-intensive industries is not significant. This study provides meso-evidence to support the findings of existing studies and provides suggestions and insights for the government to formulate relevant policies to actively cope with aging. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to examine the question, "How do firm-level, home-country and host-country environmental performance (EP) affect the outward foreign direct investment (OFDI) of Chinese multinational enterprises (MNEs)?" Design/methodology/approach: The authors examine the relationships between EP and OFDI propensity and between EP and OFDI intensity using a sample of 359 Chinese firms in industries with a significant environmental footprint between 2009 and 2019 (2,002 firm-year observations) and a Heckman two-stage model. Findings: This study shows that the propensity for OFDI by Chinese MNEs is significantly and positively related to the firm's prior EP and the country-level EP of China. However, the amount of FDI invested is significantly and positively related to the firm's prior EP and negatively related to the EP of the host country. Research limitations/implications: The findings suggest that FDI in a country by an MNE is determined by a combination of firm-level EP, home-country EP and host-country EP. This study finds that the decision to undertake FDI (propensity) and the decision about how much to invest (intensity) are determined by different factors. The propensity for FDI is determined by the home-country EP and firm-level EP. However, the intensity of FDI is determined by a combination of the host country EP and firm-level EP. A limitation is that this study only examines MNEs in China, so the findings may not apply to other countries. Originality/value: This paper shows that MNEs' EP is positively related to the propensity and intensity of their OFDI decisions. However, this paper shows that the home-country and host-country EP may also play an important role in determining the propensity or intensity of OFDI. [ABSTRACT FROM AUTHOR]

China, being the world's largest exporter, has now certain environmental commitments such as to achieve carbon neutrality before 2060. These commitments of China has raised a reasonable concern regarding the expected reduction in the production and export of pollution intensive goods in the future. Besides China, the most efficient countries in the region to produce these goods are most of the member countries from ASEAN. The current study therefore aims to analyze if in the future, China reduces the production and export of these goods, whether the selected ASEAN countries can be the next choice for the export of pollution intensive goods. Based on the data availability for the period 1990–2019, this study considers five selected ASEAN countries (ASEAN-5). The results are based on the Auto Regressive Distributive Lag (ARDL) bound testing approach to cointegration and Error Correction Modeling (ECM). The aggregate analysis of five pollution intensive goods (pulp and paper (341), industrial chemicals (351), non-metallic minerals products (369), iron and steel (371) and non-ferrous metals (372)) suggests that Foreign direct investment (FDI) inflow can significantly increase the export of pollution intensive goods only in case of Indonesia, Malaysia and Thailand. However, there is no significant effect of FDI on the export of pollution intensive goods in case of Philippines and Singapore. The disaggregate analyses of the five pollution intensive goods suggest that in each of the ASEAN-5 countries, FDI inflow can significantly increase the export of pollution intensive goods in some of these industries rather than in all of them. In nutshell, it is concluded that ASEAN-5 countries can be a potential choice for the export of pollution intensive goods in some of the pollution intensive industries but not in all of them. [ABSTRACT FROM AUTHOR]

Copyright of Pacha: Revista de Estudios Contemporáneos del Sur Global is the property of PACHA REVISTA DE ESTUDIOS CONTEMPORANEOS DEL SUR GLOBAL and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper integrates trade policy and foreign direct investment into a unified analytical framework, and investigates the effects of input trade liberalization on the entry of foreign firms. To identify the causal effects, we utilize China's accession to the WTO in 2001 as a quasi-natural experiment, and perform difference-in-difference estimation. The results show that input trade liberalization significantly increases foreign entry. We also find that input trade liberalization not only promotes the entry of new foreign firms, but also restrains the exit of existing foreign firms, thereby contributing to the net growth of the number of foreign firms. The mechanism tests show that increasing variety as well as quality of intermediate input and reduction in marginal cost are the potential channels through which input trade liberalization promotes foreign entry. This paper further demonstrates that institutional environment strengths the positive effect of input trade liberalization on foreign entry, and the promotive effect of input trade liberalization on foreign entry increases with industry import intensity, additionally, input trade liberalization is also conducive to improving the quality of foreign investment. [ABSTRACT FROM AUTHOR]

Since the reform and opening-up, China has developed into the world's number one manufacturing country. Meanwhile, China's environmental protection efforts continue to strengthen. So, will changes in the intensity of environmental regulatory policies have an impact on the technological development level and international competitiveness of China's high-tech manufacturing industries? In response to this issue, we have reviewed relevant research in the field of environmental regulation and export technology complexity, and then selected appropriate indicators to quantify the environmental regulation and export technology complexity of high-tech manufacturing industries in different regions of China. Furthermore, the entropy method was used to calculate the intensity of environmental regulations in different regions of China. In the subsequent empirical analysis, based on relevant indicator data from 30 provinces in China, excluding Tibet, from 2006 to 2021, we quantitatively analyzed the impact of China's environmental regulations on the complex export technology of high-tech manufacturing industries. The degree of influence and the robustness of the benchmark regression results was proved through endogeneity testing and robustness testing. The main conclusions are as follows: (1) from 2006 to 2021, China's environmental regulation intensity and the technological complexity of high-tech industry exports have shown an upward trend. (2) The empirical analysis results show that the increase in intensity has a significant "U-shaped" impact on the technological complexity of exports of high-tech manufacturing industries. (3) The "U-shaped" impact of environmental regulation on the technological complexity of exports of high-tech manufacturing industries has regional differences. However, the high-tech manufacturing industry does not show obvious industry differences. (4) Environmental regulations will affect the level of export technology complexity of the high-tech manufacturing industry through foreign direct investment, human capital, and innovative R D investment, which cause indirect effects. Based on those conclusions, this paper has suggested corresponding policy measures and future research directions. [ABSTRACT FROM AUTHOR]

As there are many studies on the predictors of corporate social responsibility (CSR) reporting, the influences of foreign direct investments (FDIs) knowledge spillovers (KSs) on CSR reporting in developing countries remain unclear. This paper introduces the passive‐learning KSs concept to explain whether, why, and how domestic firms learn CSR knowledge from their foreign counterparts. First, we investigate the relationship between foreign ownership and the quality of CSR reporting (CSRQ). Second, we test the moderating effect of three types of direct institutional pressures: the green development policy, the mandatory CSR reporting requirement, and CSR regulations issued by the State‐owned Assets Supervision and Administration Commission. Third, we examine the moderating effect of board interlocks to explore the indirect impacts of institutional pressures. We run regressions on a sample of Chinese A‐share listed companies and the hypotheses are generally supported. This paper contributes to the literature on CSR reporting and FDIs KSs by adopting the passive‐learning KSs theory to explain CSR KSs in developing countries. [ABSTRACT FROM AUTHOR]

Improving energy efficiency is crucial for achieving the carbon peaking and carbon neutrality goals. The digital economy, which is characterized by big data, artificial intelligence, the internet of things, and a new generation of mobile Internet, has quietly penetrated all aspects of the economy and society, profoundly changing the means of production and lives of human beings. Digital technologies have great potential to improve the global energy system's security, productivity, efficiency, and sustainability. Based on the panel data of 30 provinces in mainland China from 2006 to 2021, this study divided energy efficiency into total and single factor energy efficiency. The two-way fixed-effect model and the Driscol-Kraay method were used to adjust the standard error test in order to examine the impact of digital technology represented by industrial robots on energy efficiency and its path mechanism. Studies have shown that digital technology can significantly improve total factor energy efficiency and reduce energy intensity per unit of GDP. This conclusion was found to be still valid after the robustness test using feasible generalized least squares, time-varying difference in difference and fixed effect space Durbin model. The results of the mechanism test show that digital technology can improve energy efficiency by increasing the degree of industrial virtual agglomeration and the channels of foreign direct investment. This paper provides a valuable discussion on how information technology advances can improve energy efficiency in the era of the digital economy. The conclusions will help relevant market players to formulate policies and measures and corporate strategies to improve energy efficiency. At the same time, it also deepens the theoretical understanding and mechanism path of digital technology's impact on energy consumption. [ABSTRACT FROM AUTHOR]

What type of investment strategies are effective for foreign venture capital (VC) firms investing in transition economies? This is the research question we address in this paper by analyzing recent institutional developments and investment activities of foreign VC firms investing in China. We find that foreign VC firms identify China as lacking fully-developed institutions necessary to effectively support VC investing. We further find that foreign VCs have evolved unique proactive, hands-on investment strategies via a bumpy road of investing in China: initially dominating the Chinese VC industry, but since the great financial recession playing a still-significant but reduced and disadvantaged-role subservient to the rapidly increasing role of domestic VC firms. We developed a novel triangulation research methodology that allows us to provide significantly more depth in our analysis of how foreign VCs compete in transition economies. This research contributes to both the institutional theory and VC investing literatures. We suggest that foreign VCs can increase their competitive advantage by developing hands-on value-added investing strategies, when investing in transitioning markets. [ABSTRACT FROM AUTHOR]

Multilateral organizations are taking attention toward foreign divestment; they are in practice to shift toward a large number of host countries from their home countries. In this paper, the significant role of FDI divestment in the development of the economy has been discussed. The role and contribution of FDI divestment in emerging economies have been discussed. The study employs qualitative descriptive analysis to address the determinants of FDI divestment operated by the emerging economies specifically in China. The study is based on economic reports, official documents, and data directly related to the subject of the study. The role and contribution of FDI divestment to develop a strong corporate sector are elaborated in this paper. Furthermore, the role of FDI divestment in reforming organizations and their sustainable growth with the support of evidence has been discussed. Issues regarding FDI divestment faced by different stakeholders have been explained in this research. Inflows and outflows of FDI divestment with cause and effect have been discussed in this paper. Additionally, this study examined the role of multilateral organizations to convince emerging economies by improving their divestment approach. In global strategy formulation FDI divestment consider as a significant aspect. It is observed, that this aspect of the strategy is still untouched in the field of international business and business academies. This study is specifically in the context of China with under consideration of other developed economies. This study investigates the encouraging factors for growing economies to formulate their divestment policies. [ABSTRACT FROM AUTHOR]

Nigeria is one of the top countries of China's outward foreign direct investments in energy and power projects to meet the needs of China's fast-growing energy-intensive industries. Following several risks faced by investors to invest in countries with high levels of regulatory, judicial and political uncertainties that appeared in most African states, including Nigeria, contracting parties often take steps to advance and enhance their investment relations and investment climate through an agreement or bilateral investment treaties. This paper examines the China–Nigeria Bilateral Investment Treaty (BIT) and the investment arbitration framework in place in the energy sector. It includes a general analysis on China–African BITs and features common difficulties and possible ways of addressing them. It analyzes the adequacy or otherwise of these frameworks and the various protections afforded to the contracting parties or the host state and the investors. It contends that the current China–Nigeria BIT is lacking essential environmental and social aspects, including sustainable development, corporate social responsibility, transparency and respect for the human rights of host communities, for the promotion of better China–Nigeria investment relations. Notwithstanding the fact that there has not been any known energy dispute in China–Nigeria-related projects, this paper calls for the need for an effective and efficient dispute resolution mechanism to address future disputes between the parties, in order to promote a favorable investment climate for Chinese (and international) investors willing to invest in Nigeria. It advocates that the China–Nigeria BIT should be unambiguous and well drafted to cover issues that could best address investment disputes in the energy sector. [ABSTRACT FROM AUTHOR]

By analysing comprehensive firm data from 1999 to 2013 categorized by zip code, we find that Foreign Direct Investment (FDI) companies consistently received more local government subsidies in China. When comparing FDI within the same county and year, it becomes evident that FDI creates positive growth and productivity spillovers for other businesses in the same zip code. Furthermore, there is additional evidence to support the amenities channel as a possible productivity spillover channel. This paper makes a significant contribution to the debate regarding FDI's spillover effects at a disaggregated level. [ABSTRACT FROM AUTHOR]

Digital transformation has given firms new development capability. This paper portrays the overall digital transformation intensity of China's listed firms in 2007–20, and empirically examines the impact of digital transformation on outward foreign direct investment (OFDI) and its transmission mechanisms for the first time. It is found that digital transformation significantly enhances OFDI with two transmission mechanisms: (1) reduced transaction costs and (2) improved production and operation efficiency [Correction added on 25 Aug 2023, after first online publication: The number of transmission mechanisms have been corrected from 'three' to 'two' in this version.] The impact is more pronounced in the host countries whose economies are more digitalized, in private enterprises, and in the service industries than in their respective counterparts. [ABSTRACT FROM AUTHOR]

This paper studies the impacts of geographic proximity and investment connection on the outward foreign direct investment (OFDI) decisions by Chinese multinational firms, including both greenfield investment and cross‐border merger and acquisition. We model firms' OFDI expansion with the lagged spatial structure, and collect outward FDI data of 3479 Chinese multinational firms from 2002 to 2013 whose investment destination covers more than 160 countries. We find that the spatial expansion of firms' existing OFDI play an important role in shaping their future investment decisions. Firstly, firms tends to invest in destinations that are closer to China, and expand further into destinations that are geographically closer to their existing OFDI locations. This is the geographic network effect. Secondly, we also find that firms are more likely to invest in countries with more intense FDI from China, and extend their OFDI networks to destinations with stronger investment connections with their existing subsidiary locations. This is the investment network effect. We show that these two effects are robust to alternative investment and geographic network measures and further controls. [ABSTRACT FROM AUTHOR]

While the literature shows that stricter environmental regulations deter exports and inward foreign direct investment (FDI), few studies examine the impacts on outward FDI, especially for developing countries. In this paper, we analyse this issue in the context of China, which is the largest developing country in terms of FDI. We collect the transaction-level data of all the overseas mergers and acquisitions (M&As) by Chinese firms from 2000 to 2019. For the identification of the causal effect, we exploit the implementation of the Environmental Protection Law in 2015 as a quasi-natural experiment and carry out the difference-in-difference-in-differences analysis (DDD). The results show significant impacts of stricter environmental regulations on outward FDI. When the provincial emission reduction target increases by 10% points, the number of overseas M&A transactions in the high-polluting industries has increased by 32 every year since 2015. Moreover, the investments are more likely towards countries with better environmental protection. This suggests that firms aim at gaining cleaner technologies via M&As rather than transferring pollution abroad. [ABSTRACT FROM AUTHOR]

The effectiveness of carbon price in emissions trading schemes (ETS) is an important issue in China in the context of its ambitious climate change goals. This paper adopts a staggered difference-in-differences model to estimate whether China's ETS reduced CO2 emissions while maintaining economic growth even under low carbon prices. The results indicate that despite the low carbon prices, the ETS effectively reduced CO2 emissions without undermining the economy. Specifically, an increase of $1 in the carbon price reduced CO2 emissions by 1.69% and increased the per capita GDP by $286. The carbon price primarily achieved emission reduction and promoted economic development through channels, such as technological innovation, foreign direct investment, energy mix, and industrial structure. Carbon leakage to neighboring regions was not evident. Heterogeneity analysis showed that the environmental effects of the carbon price were more pronounced in regions with higher levels of economic development and CO2 emissions. Conversely, the economic effects of the carbon price were more pronounced in regions with lower levels of economic development and CO2 emissions. The carbon price achieved significant economic effects in regions that solely adopted the free allocation mode of emission allowances, while regions that used a combination of free allocation and auctioning experienced substantial emission reduction effects. Despite low carbon prices, China's ETS effectively reduced CO2 emissions without compromising economic growth. This finding provides new empirical evidence for the effectiveness of carbon price as well as decision support for the future promotion of ETS. Technological innovation, FDI, energy mix, and industrial structure are crucial channels through which the carbon price achieves emission reduction and promotes economic development. The absence of carbon leakage to neighboring regions suggests that ETS is an internally effective mechanism for emission control. Heterogeneity analysis showed that regional characteristics and allowance allocation modes can influence the effectiveness of carbon price, thus emphasizing the importance of targeted policy design and appropriate allocation methods. [ABSTRACT FROM AUTHOR]

Copyright of Journal of International Business Studies is the property of Springer Nature and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

It is important to explore the intrinsic mechanism of green finance's role in widening the green development space for China, in order to optimize the structure of green financial development and accelerate the construction of a modernized economic system. Taking ecological environment improvement as a new research perspective, this paper presents the impacts and mechanisms of green finance on the green development space of the economy and society through the fixed-effect model and moderating-effect model, based on panel data from 30 provinces and municipalities in China from 2011 to 2020. The findings show that green finance development in China significantly expands the green development space of the economy and society, and this conclusion did not change after robustness tests such as replacing the main variables, adjusting the study interval, and considering endogeneity. In terms of its mechanism of action, ecological environment improvement plays an important mediating and regulating role in the process of green finance, essentially magnifying the green development space of the economy and society. In terms of a heterogeneity analysis, the effect of green finance on the expansion of the green development space is the largest in the eastern region, followed by the northeastern region, and the smallest in the central and western regions. In addition, the positive effect of green finance is relatively larger in regions with a higher urbanization level, government fiscal expenditure level, foreign investment level, and advanced industrial structure. The main contribution of this paper is to the field of green development, revealing the important role of the ecological benefits of green finance, which can help to achieve high-quality sustainable development in the economy and society. [ABSTRACT FROM AUTHOR]

Global regional trade agreements (RTAs) are experiencing unprecedented rapid development in terms of number and content of provisions, and China's RTAs are no exception. With the increase in the depth of RTA provisions, as an important form of economic and trade relations between countries, investment is bound to be affected. Taking the RTAs signed by China as the research object and using the bilateral foreign direct investment (FDI) data provided by the International Monetary Fund CDIS database and the relevant data from the World Bank RTA text depth database, this paper constructs various indexes to measure the depth of RTA provisions and analyzes the effects of changes in the depth of RTA provisions on inward FDI stocks to China. The study finds that the improvement of all four depth indexes, namely, total depth, core depth, depth of WTO+ provisions, and depth of WTO-X provisions, significantly promotes China's inward FDI stocks. This conclusion still holds after a series of endogenous problem analysis and robustness tests. Further analysis shows that the improvement of the depth of RTA provisions has a relatively greater effect on FDI stocks from developing countries and countries along the "Belt and Road". At the same time, there exists significant heterogeneity in the effects of different RTA provisions on the FDI stocks. The insights that we obtain in this paper enable us to provide policy recommendations for the construction of China's global high-standard free trade agreement (FTA) network. [ABSTRACT FROM AUTHOR]

This paper utilizes available aggregate country-level data, as well as bilateral trade and investment data, to identify signs of fragmentation in trade and investment patterns among ten major trading countries or regional trading blocks. We compare the trade and investment trends in the years during the US-China trade war and increase in geopolitical tensions (2018-2021) against the years preceding the trade war (2014-2017). Our analysis generally corroborates findings in the existing literature. Bilateral flows between the US and China have been damaged, but there is little evidence of wider fragmentation or that the world is splitting into competing spheres. Even focusing on technologyintensive manufactures that are increasingly subject to trade restrictions, we find no evidence of broad fragmentation. Our analysis does reveal, however, shifts in global trade and FDI, particularly towards Central and Eastern Europe (CEE) and ASEAN countries. This may reflect a partial reshuffling of global value chains that is a natural outcome of favorable developments in these regions, as well as rising production costs in China. Such shifts do not necessarily reflect global fragmentation driven by geoeconomics factors. [ABSTRACT FROM AUTHOR]

Energy efficiency (EE) plays an important role in achieving the dual-carbon goal, and improving EE is thus indispensable. This paper evaluates the impact of carbon emission trading policy (CETP) on EE based on a difference-in-difference (DID) method, using 16-year data of 30 provinces and cities from 2005 to 2020. Conclusions are as follows: (1) CETP significantly promotes EE, and this conclusion still appears valid after robustness tests. (2) The positive impact of CETP on EE is more effective in regions of high foreign direct investment (FDI) and high government intervention (GOVI). (3) The positive impact of CETP on EE is through impact mechanisms of energy structure adjustment (ESA), green innovation (GI), and industrial structure upgrading (ISU). The findings in this paper may enrich current research in CETP and offer more pragmatic suggestions for policy advancement as well. [ABSTRACT FROM AUTHOR]

In recent years, Pakistan has embarked on a strategic realignment, prioritizing geoeconomics as a central pillar of its foreign policy. In this study, the core question that is addressed is whether geo-economic turn in Pakistan's foreign policy has led to greater interdependence or enhanced economic, political, and strategic power for Pakistan? The analysis delves into the various dimensions of Pakistan's geo-economic turn, including its efforts to foster regional connectivity, engage in the economic diplomacy, and attract foreign investment. It also examines the nation's evolving relationships with key regional players, such as China, India, Afghanistan, and Central Asian states. Through the study of documents related to the China-Pakistan Economic Corridor (CPEC) and interviews conducted by policymakers and researchers, different dimensions of geo-economics are explored in this paper. A comprehensive review of economic indicators and strategic partnerships helped us to analyze the extent to which Pakistan's geo-economic approach has yielded positive outcomes. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to investigate the primary motivations for China's outward foreign direct investment (ODI) decisions. Design/methodology/approach: Using a panel data sample covering the period 2003–2012 and a comprehensive set of 176 host countries. Findings: This study finds that market size, trade variables and natural resource variables are strongly related to the Chinese ODI stocks. This indicates that Chinese ODI decisions are driven by both market- and resource-seeking motives. The subperiod sample test results lend even stronger support to the market-seeking motive for ODI. Originality/value: These results seem to emerge from the policy changes that were undertaken during the sample period. Consistent with subgroup tests, this study finds that the main purposes of China's ODI in the top 100 countries are natural resource explorations and production line replacements. [ABSTRACT FROM AUTHOR]

This paper examines the impact of green finance and carbon emission performance, as well as the mechanisms, using data from 30 Chinese provinces for the time frame of 2008–2018. The findings show that (1) the level of green finance development significantly enhances carbon emission performance, where industrial structure, foreign direct investment, and population density are all important control variables affecting carbon emission performance. (2) Energy consumption structure, green industry, and green patented technology are all mediating variables for the level of green finance development to enhance carbon emission performance. Meanwhile, the effects of green finance development on carbon emission performance are nonlinear under varying economic growth, industrial structure, and urbanization levels. (3) After addressing the spatial autocorrelation of carbon emission performance, the level of green finance development still significantly enhances carbon emission performance. (4) The level of green finance development in China's eastern provinces, pilot provinces of carbon emission trading, and provinces with abundant coal resources can more significantly enhance carbon emission performance. On this basis, this paper makes specific suggestions for green finance to enhance carbon emission performance. [ABSTRACT FROM AUTHOR]

This paper uses cointegrated error-correction modeling to investigate the nature of Granger causality between corruption and foreign direct investment (FDI) in two rapidly emerging economic superpowers; namely, China and India. The results for China and India indicate that short-run Granger causality unidirectionally runs from FDI to corruption without feedback. These empirical findings (along with supporting theoretical arguments) dispute prior correlational-based studies which claim that corruption instigates changes in FDI. However, our results further support significant long-run causality running from corruption to FDI inflows, but only in India (not in China). This finding reinforces theoretical propositions of lower corruption arbitrariness in China as compared to India. Furthermore, short- and long-run causality between corruption and FDI in India appear dynamic in nature and time-sensitive implying some difficulties for policymakers in their fight against corruption. The paper discusses possible underlying reasons for the empirical results and draws several policy and Asian business implications. [ABSTRACT FROM AUTHOR]

China Overseas Economic and Trade Cooperation Zone (COCZs) which as a platform for China's foreign investment and trade has a potential impact on CO2 emissions, while strengthening bilateral investment and trade between China and the host countries. Since most of the COCZs are located in countries along the "Belt and Road," the purpose of this paper is to investigate the impact of COCZs on CO2 emissions of the countries along the "Belt and Road" and the mechanism of this impact. We constructed a panel data of 63 countries along the "Belt and Road" from 2000 to 2020, and conducted an empirical study using the difference-in-difference (DID) model. Our research result show that COCZs can significantly increase the CO2 emissions of the countries along the "Belt and Road." Then, we conduct a series of robustness tests and endogeneity test on the estimation results of the baseline model, and the results of the tests all support the conclusion reached by the baseline model. Our heterogeneity analysis reveals that the effect of COCZs on CO2 emissions is more significant in Asian countries with lower national income or industrialization and higher country risk. Finally, we analyzed industrial value added and energy depletion as possible impact mechanisms, the results of mechanism model shows that COCZs can increase the industrial value added and then significantly increase CO2 emissions, but energy depletion was not an efficient mechanism. Our paper provides a new insight into the impact of bilateral economic and trade cooperation zones on CO2 emissions in host countries. [ABSTRACT FROM AUTHOR]

Belt and Road Initiative (BRI) aspects, i.e. open trade (OT), foreign direct investment (FDI), capital formation, and information and communication technology (ICT) exports, are fundamental for any nation's sustainable Economic Development (ED). The paper seeks to examine the effect of those aspects on the ED of Saudi Arabia and other Middle East nations which participate in BRI. The study uses the yearly cross-sectional time-series data from 2013 to 2022. The dual-stage Generalized Method of Moments (GMM) is employed in the sample because the sum of parameters is smaller than the sum of moment clauses. The findings reveal that capital formation and FDI significantly and positively affect the ED, while OT and ICT exports negatively and insignificantly affect it. The general findings show that China's external FDI has increased the ED in Saudi Arabia and other Middle East nations whereas OT shows an insignificance as the majority of emerging nations should capitalize industrial development and hearten export expansion. This study is an initial effort to examine the relationships among BRI aspects and sustainable ED in Middle East Nations using the GMM method. [ABSTRACT FROM AUTHOR]

This paper compares the paths of development taken by China and Malaysia in their attempts to pursue catching-up. While both China and Malaysia rely to a large extent on attracting foreign direct investment, China has, since its economic liberalisation in the late 1970s, implemented a more proactive set of industrial policy to embed foreign know-how and promote domestic technological deepening. This is illustrated through a comparison of the evolution of the Chinese and Malaysian semiconductor (upstream) industry. Although their progress remains tentative at this stage, China seems to be showing more concrete signs of technological and industrial sophistication than Malaysia. Such mastery is a useful platform for Chinese firms to progressively climb the technological ladder and to capture more value from the production and sales of increasingly complex goods and services. The principles discussed in this paper provide policy lessons, or at least some initial guidance, for other developing economies aspiring to move up the value chain. [ABSTRACT FROM AUTHOR]

Based on the provincial panel data of China from 2011 to 2020, this paper explores the relationship between two-way FDI and green technology innovation and examines the moderating role of digital finance in the impact of two-way FDI on green technology innovation. The results show that (1) two-way FDI can significantly enhance the level of green technology innovation. (2) Digital finance plays a moderating effect in the process of two-way FDI to enhance the level of green technology innovation. The conclusion is still robust by replacing the dependent variable, eliminating special samples and shrinking the tail. (3) The results of sub-dimensional analysis show that the three sub-dimensions indicators of the digital finance also have a positive moderating effect on the relationship between two-way FDI and green technology innovation. (4) The results of sub-regional regression show that the moderating effect in the central and western regions is greater than that in the eastern region. The results of the study can provide reference for governments to formulate policies about digital finance, which is conducive to achieve high-quality opening-up and realize green development. [ABSTRACT FROM AUTHOR]

Based on the ecological-economic-social system, green development efficiency is divided into green ecological efficiency, green economic efficiency and green social efficiency. Their corresponding indicator systems are constructed, and the Super-SBM model, Super-SBM-Undesirable model and kernel density estimation are applied to measure and analyze green development efficiency and its dynamic evolution in western China from 2007 to 2019. Tobit model is constructed and used to empirically analyze the influencing factors of the green development efficiency in western China. The study shows that: (1) green ecological efficiency and green economic efficiency in western China are generally at a low level, and mainly dragged by northwest China, while green social efficiency in western China is generally at a high level, and mainly dragged by southwest China; (2) green ecological efficiency, green economic efficiency and green social efficiency in western China all show a slight trend of first decreasing and then increasing; (3) all three sub-efficiencies of green development in western China have a decreasing trend of absolute difference, right trailing and polarization; (4) the lower green ecological efficiency in western China is due to the negative impacts from the level of government intervention, the level of economic development, and foreign direct investment. The lower green economic efficiency is due to the positive impacts from population density, the level of government intervention, the level of financial development, and foreign direct investment. The higher green social efficiency is due to the positive impacts from population density, the level of financial development, the level of economic development, and the green technological innovation. The study is based on countermeasure recommendations focusing on improving green social efficiency in southwest China, as well as green ecological efficiency and green economic efficiency in northwest China, which are of reference value to promote green development more comprehensively in western China. [ABSTRACT FROM AUTHOR]

With the ever-increasing global temperatures, the long-term climate change trend has become an essential part of global investor strategies. Before dealing with the reduction of international direct investment caused by climate change, governments and enterprises should clarify the causal relationship between temperature change and international direct investment, as well as the impact mechanism. This paper empirically examines the impact of host country temperature changes on the probability and scale of international direct investment inflows using data on Chinese enterprises' foreign direct investment and the temperature of each host country from 2009 to 2019. The results show that a 1% increase in host country temperature decreases the probability of Chinese firms' FDI inflows by 5.92% and reduces the size of FDI by 2.60%. The host country's temperature change has a cumulative effect on inhibiting Chinese enterprises' direct investment. The mechanism analysis shows that high temperatures increase the number of meteorological disasters, causing economic losses and reducing economic growth rates, which in turn inhibit direct investment from China. The negative effect of host country temperature change on firms' location choice for international investment is more significant in manufacturing, non-state, and low R&D investment firms. [ABSTRACT FROM AUTHOR]

Purpose: Under the guidance of the concept of openness and development, the paper grasps the mechanism of technology spillover in developed countries and analyzes how to better absorb advanced manufacturing technology based on empirical analysis so as to point out the path for the transformation and development of China's digital manufacturing industry. Design/methodology/approach: The paper constructs the panel data model and further analyzes the impact of international technology spillovers on the transformation and development of the digital manufacturing industry. Findings: This paper measures the level of technology spillover in the Yangtze River Delta region and finds that foreign direct investment (FDI) technology spillover and import trade technology spillover among four provinces and cities show a growth trend from 2010 to 2017. But after 2017, there is a certain degree of decline. Originality/value: With the advent of industry 4.0, the digital manufacturing industry of all countries in the world is developing with a new attitude, the global technology spillover methods are diverse and the spillover channels have changed greatly, which will affect the transformation and upgrading of China's digital manufacturing industry. [ABSTRACT FROM AUTHOR]

Since 2005, China's outward foreign direct investment (OFDI) has increased year by year, which corresponds to the continuous decline of energy intensity. But there is limited literature concerning their relationship nowadays. To answer whether or not OFDI can reduce energy intensity, this paper selects data from 29 provinces in China from 2006 to 2015 and establishes a fixed-effects model to analyze the relationship. Further, this paper divides OFDI into technology-intensive ones and non-technology-intensive ones in order to distinguish the impact of outward foreign direct investment from different types of enterprises on the energy intensity. Combined with the micro-data of A-share listed companies in Shanghai and Shenzhen stock exchanges, we find that OFDI plays a significant role in reducing the energy intensity in China, and OFDI of high-technology-intensive enterprises has a greater effect on the decrease of energy intensity than that of low-technology-intensive enterprises. This paper classifies OFDI from the perspective of enterprise technology intensity, which enriches the existing research results in the field of international cooperation and energy intensity. It also overcomes the limitations of previous literature data and provides new evidence for encouraging high-tech enterprises to strengthen international cooperation from a micro level. [ABSTRACT FROM AUTHOR]

Both "dual cycle" and "carbon neutral" policies have been implemented as national strategies in China. But will "dual cycle" policy help carbon neutral policy and how do "dual cycle" policy affect carbon neutral policy? This paper investigates whether unbalanced bidirectional foreign direct investment (FDI) hinders electricity efficiency. To do so, it uses the super slack-based version of the global Malmquist–Luenberger index to measure electricity efficiency in 30 provinces from 2001 to 2020. This paper uses panel threshold regression model, finds out that bidirectional FDI below 1.7174 will positively impact electricity efficiency, but the positive effects disappear when bidirectional FDI exceeds 1.7174. Thus, balanced bidirectional FDI in province is required to enhance electricity efficiency. [ABSTRACT FROM AUTHOR]

As a Chinese solution to build a community of human destiny, Belt and Road Initiative (BRI) has shown China's international responsibility by promoting its green development. Based on the annual panel data of Chinese cities from 2004 to 2018, this paper systematically explores the effect of BRI on the Green Total Factor Productivity (GTFP) of cities along its domestic route using the difference-in-differences (DID) method. The results of the study show that (1) BRI significantly increases the GTFP of cities along its domestic route, and this finding holds after excluding a series of robustness tests such as endogeneity issues and other policy disturbances. (2) BRI promotes the growth of GTFP in the region mainly through improving science and technology innovation, increasing foreign direct investment and enhancing trade cooperation. (3) From the perspective of heterogeneity, the promotion effect of BRI on the GTFP of inland cities along the route is much higher than that of coastal cities, and cities along the route with stronger environmental concerns have a more significant enhancement effect. (4) Based on the policy context and the undertaking of role functions, there is a significant positive linkage effect between BRI Initiative and the Free Trade Zone (FTZ) construction in promoting GTFP growth. (5) From a spatial perspective, BRI has not only increased the GTFP of cities along the route, but also radiated the growth of GTFP in neighboring cities along the route. The conclusion of this paper provides a policy reference and theoretical basis for further building the green "Belt and Road" and promoting the sustainable development of China's economy and high-quality transformation. [ABSTRACT FROM AUTHOR]

Green innovation (GI) has the dual attributes of green development and being innovation driven, and it has become an inevitable choice for solving the prisoner's dilemma of environmental protection and economic development under the action of the concept of sustainable development in the new era. This paper aims to clarify how environmental regulation (ER) can achieve a win‒win situation of GI and environmental protection by using data from prefecture-level cities in China and creating a dynamic panel model, quantile model, spatial econometric model, and panel threshold model to empirically analyze the dynamic effect and spatial effect of ER on GI as well as the nonlinear characteristics of the relationship between them and to examine the moderating effect of foreign direct investment (FDI). The results show that ER significantly promotes the development of the GI level and that FDI can play a positive moderating role. The impact has regional heterogeneity, time period heterogeneity, and resource endowment heterogeneity. After several robustness tests, the empirical conclusions are still credible. Based on the empirical conclusions, this paper makes policy suggestions on ER, foreign investment introduction, and the coordinated development of regional GI. [ABSTRACT FROM AUTHOR]

Rapid development and agglomeration of manufacturing industries in China inevitably lead to serious environmental pollution problems. The government restrains development of manufacturing industries through environmental regulation policies, but this may affect manufacturing industries agglomeration. Therefore, studying the impact of environmental regulation (ER) on manufacturing agglomeration (MA) is a critical prerequisite for the sustainability of China's manufacturing industry. Based on the panel data of 41 cities in Yangtze River Delta (YRD) region of China from 2003 to 2017, this paper explores the threshold effect of ER on MA using a panel threshold model and analyzes the heterogeneity impact of ER on MA in different regions and analyzes the dynamic mechanism and contribution of each influencing factor on MA using a panel vector autoregressive model. The results show that (1) there is a double threshold effect of ER on MA, showing an inverted "U"-shaped effect of rising and then falling; there are threshold effects of ER on MA based on foreign direct investment (FDI) and economic development level (EDL). The effect of ER on MA has the threshold effect under different FDI and EDL level, in which the effect based on FDI shows an inverted "U" shape relationship of rising and then falling; the effect based on EDL shows a growing trend. (2) There are 29 cities in YRD region in the "weak regulation" or "strong regulation" stage, both of which are not conducive to MA. (3) ER has a facilitating effect on MA, but with the extension of forecast period, this facilitating effect turns into an inhibiting effect. MA is mainly influenced by itself and transportation conditions (TC). Our study can provide some insights for improving the ecological environment and promoting the development of manufacturing clusters in YRD region. [ABSTRACT FROM AUTHOR]

The global rise of China in the last three decades has reshuffled power dynamics in the global economy, including the global balance of power in employment relations. Since 2000, global FDI inflows into China have more than quadrupled, but also, something less noticed by research, China's FDI outflows have increased more than hundredfold, and by 2015 had overtaken the inward flows (UNCTAD data). [Extracted from the article]

At present, China's economy is transforming from rapid development to high-quality development, and environmental pollution stands out as an urgent need to be addressed. Fiscal decentralization is considered to confer economic incentives on local governments to obtain the right to gain and spend in economic growth. However, at the same time, political incentives are given to local officials under the promotion mechanism based on gross domestic product (GDP) assessment, and these two incentives become key to the environmental performance of the jurisdictions. Therefore, this paper incorporates fiscal decentralization, promotion incentives, and environmental pollution into a unified framework and theoretically analyzes the effects of fiscal decentralization, promotion incentives on environmental pollution, and the intrinsic mechanism of action. Using panel data of 30 Chinese provinces from 2002 to 2018, we examine that fiscal decentralization significantly promotes environmental pollution, and this performance is more obvious in economically underdeveloped regions. In terms of its mechanism of action, fiscal decentralization affects environmental pollution by increasing the demand for foreign direct investment, inhibiting technological progress, and enhancing environmental regulation, while foreign direct investment and technological progress significantly inhibit environmental pollution, but environmental regulation does not present a role of pollution control. Further study finds that under the consideration of "GDP-based promotion incentives," local officials will generate "competition for investment," relax environmental standards for FDI, and generate "competition for growth", which will inhibit technological progress and incomplete enforcement of environmental regulations, thus exacerbating local environmental pollution. On this basis, this paper proposes to further deepen the fiscal system reform, promote the optimization of local government competition system, and effectively restrain the vicious competition behavior of local officials under the fiscal decentralization system, so as to provide relevant insights for realizing China's economic transformation as well as high-quality economic development. [ABSTRACT FROM AUTHOR]

Whether regional integration can promote the urban agglomeration to attract foreign direct investment and expand the opening‐up is a question worthy of in‐depth discussion. This paper constructs a quasi‐natural experiment from the perspective of regional integration expansion in the Yangtze River Delta, using the panel data of 208 cities in China from 2005 to 2017. The main purposes are to examine and analyze the common trends and regional differences regarding the influences of regional integration on FDI in entire cities, incumbent cities, and new cities. Next, the internal mechanisms of expansion on FDI are explored. The results show that the regional integration exerted a significant positive effect on the FDI of the entire Yangtze River Delta. For different regions, the effect of regional integration on FDI in the incumbent cities was higher than that in the new cities. In terms of mechanisms, regional integration could affect FDI through industrial division mechanism and market unification mechanism, yet the role of economic connection mechanism exhibited regional differences. The conclusions of this paper bear important enlightenment for promoting the construction of regional integration in China and the high‐quality growth of FDI in the Yangtze River Delta. [ABSTRACT FROM AUTHOR]

In this paper, we investigate the characteristics and mechanisms of cultural diversity that affect foreign direct investment (FDI) using the panel data on provinces in China from 1999 to 2019 and find that, in general, cultural diversity inhibits FDI absorption. However, this kind of adverse effect has a nonlinear threshold characteristic. That is, when the population density reaches a certain level or urbanization is controlled within a certain range, the increase in cultural diversity can weaken the inhibitory effect on FDI. Additionally, by exploring the mechanisms of cultural diversity affecting FDI, we further find that cultural diversity inhibits FDI mainly through the channels of inhibiting population density and urbanization. The conclusions of this paper not only enrich the theoretical research on FDI location from the perspective of cultural diversity but also shed light on how to better attract FDI to China and other countries, such as resolving cultural conflicts and constructing an inclusive investment environment. [ABSTRACT FROM AUTHOR]

Pollution has become an unavoidable concern as China's high-quality development is underway. How to reduce pollution is an imperative issue for China to address. Pollution emissions are closely related to factor inputs, production processes and pollution control measures. Are there other forces to cut emissions besides regulatory control? Taking sulfur dioxide as an example, this paper probes into the potential mechanism through which technical efficiency drives pollution reduction in the context of opening to foreign investment. The results reveal that the openness to foreign investment remarkably lowers pollution emissions of firms, with SOEs, large firms and exporters seeing more pronounced pollution reduction effect after opening to foreign investment, while firms in pollution-intensive industries and less regulated areas are weaker in pollution reduction. A look into firm behavior suggests that the openness to foreign investment reduces pollutant emissions by improving technical efficiency rather than by raising investment in pollution control. The pollution reduction effect resulting from the openness is reflected in the improvement of intra-firm emission reduction capacity instead of inter-firm resource reallocation effect, according to an analysis at the aggregate level. This paper concludes that technical efficiency gains are an important tool to advance pollution reduction, and that China must be more flexible in leveraging the pollution reduction effect of other policies regarding technical efficiency to drive its high-quality development that is green. [ABSTRACT FROM AUTHOR]

Environmental resources play an extremely important role in economic development. In the context of China's economic development entering a new normal, attaching importance to environmental protection and strengthening environmental regulations will have an important impact on the original foreign direct investment (FDI) and China's economic development. Therefore, this paper combines the characteristics of the "new normal" of China's economic development, takes 30 provinces in China from 2008 to 2017 as the research object, and uses the PVAR model and impulse response function to re-verify the interaction mechanism and path among environmental regulation, FDI and high-quality economic development. The study found that: (1) There is an obvious mutual promotion relationship between environmental regulations and the quality of China's economic development and economic development environment. Strengthening environmental regulation is conducive to the realization of China's economic "new normal" development goal. (2) Although the strengthening of environmental regulation will have a significant constraint effect on FDI and China's economic growth rate, but the effect is relatively small. (3) FDI and economic growth rate variables are mutually motivated and promote each other, but both of them have a significant inhibitory effect on regional environmental regulation. In general, under the background of the "new normal" of China's economic development, appropriately increasing the intensity of environmental regulation is not only conducive to environmental protection and promoting high-quality and sustainable economic development, but also can serve the purpose of guiding the structure of foreign investment and transforming the mode of economic growth. [ABSTRACT FROM AUTHOR]

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