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The significance of democratic commitment is highlighted on a global scale by the importance placed on offering a multitude of chances to establish enduring ecosystems and foster economic progress. Social finance, capital formation, and green finance have recently received a lot of attention from this perspective. Past studies mainly examined social finance and green finance in isolation. When investigating the individual impact of these important variables on economic growth in the occurrence of important events like the COVID-19 pandemic and other environmental pollution issues, most studies have mainly focused on developed countries, ultimately ignoring the different dynamics in emerging economies. The purpose of the research is to investigate the joint interaction between social finance (Social Impact Bonds), capital formation, and green finance (green loans, green investments, and green security) on economic development in BRICS economies. This research employed a longitudinal dataset from 2013 to 2023. The generalized method of moments (GMM) and fixed effect model (FEM) were employed in this research as statistical techniques for estimating parameters. The findings of this study revealed a positive joint relationship between green finance, capital formation, and social financing on economic development of BRICS economies. Therefore, measures that jointly promote social and green finance amidst environmental challenges or economic risks could present opportunities to mitigate the vulnerability of a country's economic prosperity. This research will surely guide policymakers in developing economies on how to give considerable attention to sustainable aspects while formulating policies and strategies aimed at economic development. [ABSTRACT FROM AUTHOR]

This paper takes up the classical scheme regarding the problems of distribution, accumulation, and growth, first in a closed economy, and then in an open one. It seeks to update such a theory in the light of modern knowledge and to see to what extent it can help to understand contemporary problems in different geographical territories of the world, in particular concerning subsistence wage levels in a scenario of unlimited labour supply. [ABSTRACT FROM AUTHOR]

Abstract The significance of democratic commitment is highlighted on a global scale by the importance placed on offering a multitude of chances to establish enduring ecosystems and foster economic progress. Social finance, capital formation, and green finance have recently received a lot of attention from this perspective. Past studies mainly examined social finance and green finance in isolation. When investigating the individual impact of these important variables on economic growth in the occurrence of important events like the COVID-19 pandemic and other environmental pollution issues, most studies have mainly focused on developed countries, ultimately ignoring the different dynamics in emerging economies. The purpose of the research is to investigate the joint interaction between social finance (Social Impact Bonds), capital formation, and green finance (green loans, green investments, and green security) on economic development in BRICS economies. This research employed a longitudinal dataset from 2013 to 2023. The generalized method of moments (GMM) and fixed effect model (FEM) were employed in this research as statistical techniques for estimating parameters. The findings of this study revealed a positive joint relationship between green finance, capital formation, and social financing on economic development of BRICS economies. Therefore, measures that jointly promote social and green finance amidst environmental challenges or economic risks could present opportunities to mitigate the vulnerability of a country's economic prosperity. This research will surely guide policymakers in developing economies on how to give considerable attention to sustainable aspects while formulating policies and strategies aimed at economic development.

This paper examines the factors influencing Kosovo's economic growth from 2009 to 2022, specifically investigating the relationship between export, capital formation, consumption, and economic growth using co-integration analysis and the Vector Autoregressive Model (VAR). The findings indicate that exports of goods and services, as well as household consumption, negatively affect economic growth. Conversely, gross capital formation positively impacts economic growth. The study underscores the complexity of economic growth, highlighting the varied significance of different determinants in different contexts. Key findings reveal that while export and gross capital formation are significant contributors to economic growth, household consumption shows an insignificant relationship to GDP. This research contributes to the ongoing debate on the critical factors influencing economic growth, providing empirical evidence from the context of Kosovo and enhancing our understanding of these dynamics, thus offering new insights for policymakers.

Purpose: Debt sustainability and the growing level of external debt in sub-Saharan African (SSA) continue to be significant research priorities. This study aims to examine the corruption-external debt nexus in SSA economies and whether different levels of corruption better explain this relationship. Design/methodology/approach: The panel quantile regression approach was applied to account for the heterogeneous effect of the exogenous variables on external debts. The research covers 30 years of panel data from 30 selected SSA economies for the period spanning from 2000 to 2021. Findings: The empirical findings of the regression analysis demonstrate the heterogeneous influences of the exogenous variables on external debt. While there was a positive impact of foreign direct investment (FDI) inflows on external debts, corruption established a negative relationship with external debt from the 10th to the 80th quantile. The findings showed a positive link between trade openness and external debt, while they also showed a negative relationship between gross fixed capital formation and external debt. Research limitations/implications: It is implied that corruption "sands the wheels" of external debts in the selected SSA countries. Therefore, the amount of external debt that flows into SSA is inversely correlated with corruption activity. Originality/value: To the best of the authors' knowledge, this study is one of the first to use panel quantile regression to analyze how corruption affects debt dynamics across different levels of debt, allowing for a more nuanced understanding of how corruption affects debt dynamics. Based on the findings of this study, SSA countries should create enabling environments to attract FDI inflows and to continue to drive domestic revenue mobilization and capital so as to be less dependent on external debts. [ABSTRACT FROM AUTHOR]

Historically, India has been a great investment opportunity for foreigners. However, in the last several decades, the country has experienced a substantial increase in its foreign direct investment (FDI) owing to several reforms made by the government. This study analyzes the determining factors behind Indian FDI inflows from its top source countries using the augmented gravity model. The sample period of this study ranges from 2000 to 2019, thus providing an updated analysis regarding FDI inflows. To attain the objective of this paper, we employ several econometric techniques such as Poisson pseudo maximum likelihood (PPML), feasible generalized least square (FGLS), and Newey-West standard error models. The findings show that the source country's per capita GDP is a negative determinant of FDI inflows in India from selected countries of the world. Moreover, FDI openness, gross fixed capital formation, and exports are found as the positive determinants of FDI inflows in India. The results imply that more export-oriented sectors can be identified for the selected nations, encouraging inflows. The country should look forward to incorporating new elements in old bilateral investment treaties as per the new conditions of the world economy. [ABSTRACT FROM AUTHOR]

The literature has mainly focused on analyzing the relationship of remittances with economic growth and social welfare, neglecting more complex aspects where remittances can have relevant implications. To contribute to the literature, the objective of this research is to examine the dynamic relationship between remittances, capital formation, structural transformation and economic growth in 15 Latin American countries during the period 1996–2019. To meet the objective, a panel vector autoregressive regression (PVAR) model was estimated, focusing on the analysis of the impulse-response function and variance decomposition. The results show a positive effect of remittances on economic growth and capital formation and a negative effect of remittances on structural transformation for initial periods and positive for later periods, framing a non-linear relationship. In addition, it was determined that structural transformation does not have a significant impact on economic growth. Finally, it was found that capital formation has a partial positive effect on economic growth. It is concluded that public policies should generate support mechanisms for the efficient channeling of these resources so that they become engines of growth. [ABSTRACT FROM AUTHOR]

BACKGROUND AND OBJECTIVES: This study aims to examine the endogenous variable, lowcarbon development, and valuate its influencing factors, given its pivotal role in environmental protection amid climate change concerns and economic growth. Low carbon development is a new platform to maintain economic growth through reducing carbon emissions and reducing the use of natural resources, because it was predicted that reducing emissions will increase economic growth while preventing forest loss, improving air quality and living standards, and reducing mortality rates. METHODS: Utilizing a quantitative method, this study integrates a novel viewpoint by combining low-carbon development with related emission factors. The study utilizes secondary data, specifically time series data spanning 31 years from 1991 to 2021, which were analyzed using regression study methods. The factors being examined include capital formation, deforestation, land transportation, agricultural land, and industrialization. FINDINGS: Findings reveal that low-carbon development in North Sumatra is influenced significantly by capital formation, deforestation, agricultural land, and industrialization, with land transportation showing no substantial impact. Capital formation has a favorable impact on low-carbon development. But, deforestation, land transportation, agricultural land and industrialization have a negative impact on low-carbon development. Together, these determinants account for 77.55 percent of the variance. Capital formation contributes 19.8 percent, deforestation 15.6 percent, agricultural land 19.0 percent, and industrialization 18.9 percent to low-carbon development. CONCLUSION: The hypothesis established in this study is accepted. To foster low-carbon development in North Sumatra, specific attention is required from local governments. Capital formation is vital. Measures include controlling interest rates, supporting businesses, fostering an investment-friendly climate, ensuring security, and integrating environmental sustainability considerations into project implementation to curb carbon emissions. Prevention of deforestation involves tightening land clearance licenses and enhancing institutional quality through environmental protection and property rights legislation. The government must strive for promoting eco-friendly agricultural practices with mitigated through outreach programs involving experts who educate farmers on minimizing emissions, reducing carbon emissions from pesticide with using biochar sourced from empty palm fruit bunches and also rice straw which is very easy to obtain at a low cost and is environmentally friendly, and emphasizing environmental preservation policies in the industrial sector like industrial transformation efforts with an effective approach to reducing carbon emissions such as restructuring various aspects of industrial activities, including investment, final demand, intensity and production methods. The implementation of tax emissions and strategic interventions increases the likelihood of realizing low-carbon development in North Sumatra, aligning with sustainable development goals. [ABSTRACT FROM AUTHOR]

BACKGROUND AND OBJECTIVES: This study aims to examine the endogenous variable, low-carbon development, and valuate its influencing factors, given its pivotal role in environmental protection amid climate change concerns and economic growth. Low carbon development is a new platform to maintain economic growth through reducing carbon emissions and reducing the use of natural resources, because it was predicted that reducing emissions will increase economic growth while preventing forest loss, improving air quality and living standards, and reducing mortality rates.METHODS: Utilizing a quantitative method, this study integrates a novel viewpoint by combining low-carbon development with related emission factors. The study utilizes secondary data, specifically time series data spanning 31 years from 1991 to 2021, which were analyzed using regression study methods. The factors being examined include capital formation, deforestation, land transportation, agricultural land, and industrialization.FINDINGS: Findings reveal that low-carbon development in North Sumatra is influenced significantly by capital formation, deforestation, agricultural land, and industrialization, with land transportation showing no substantial impact. Capital formation has a favorable impact on low-carbon development. But, deforestation, land transportation, agricultural land and industrialization have a negative impact on low-carbon development. Together, these determinants account for 77.55 percent of the variance. Capital formation contributes 19.8 percent, deforestation 15.6 percent, agricultural land 19.0 percent, and industrialization 18.9 percent to low-carbon development.CONCLUSION: The hypothesis established in this study is accepted. To foster low-carbon development in North Sumatra, specific attention is required from local governments. Capital formation is vital. Measures include controlling interest rates, supporting businesses, fostering an investment-friendly climate, ensuring security, and integrating environmental sustainability considerations into project implementation to curb carbon emissions. Prevention of deforestation involves tightening land clearance licenses and enhancing institutional quality through environmental protection and property rights legislation. The government must strive for promoting eco-friendly agricultural practices with mitigated through outreach programs involving experts who educate farmers on minimizing emissions, reducing carbon emissions from pesticide with using biochar sourced from empty palm fruit bunches and also rice straw which is very easy to obtain at a low cost and is environmentally friendly, and emphasizing environmental preservation policies in the industrial sector like industrial transformation efforts with an effective approach to reducing carbon emissions such as restructuring various aspects of industrial activities, including investment, final demand, intensity and production methods. The implementation of tax emissions and strategic interventions increases the likelihood of realizing low-carbon development in North Sumatra, aligning with sustainable development goals.

The view posited by the International Demonstration Effects hypothesis is that exposure to developed country's consumption pattern will have negative effect on less developed countries domestic resource mobilization for development. This paper therefore attempts a validation of the international Demonstration Effect Hypothesis in Nigeria. The study employed annual time series data sourced from world development Indicators for the period 1996 and 2021. Autoregressive Distributed lag model (ARDL model) was adopted as the estimation technique for the study. The empirical results of the estimated models do not support the hypothesis that international demonstration effect when proxied with percent of the population with access to the internet depresses savings mobilization efforts in Nigeria over the period of the analysis. It is recommended that more rigorous analysis and alternative proxies be explored before a conclusive position could be taken on the proposition. [ABSTRACT FROM AUTHOR]

We investigate the origins of modern growth theory using Ramsey's seminal A Mathematical Theory of Saving (1928) by dividing Ramsey's optimal savings problem into two principal components, (1) the relationship between personal savings and the formation of capital, and (2) the optimal intertemporal balance between consumption and savings. The first component serves as a philosophical conduit for surveying classical and early neoclassical perspectives on savings and capital formation. The second details early neoclassicists' consideration of mathematical methods and intergenerational welfare. Taken together, we create a pathway between early discussions of savings and capital formation, and the origins of growth theory. [ABSTRACT FROM AUTHOR]

Purpose – This study aims to explore the possibility that securities markets in selected African countries of Egypt, Kenya, Nigeria and South Africa play a significant role in capital accumulation using panel data analysis. This is done by exploring the relationship between gross fixed capital formation on the one hand and financial market development indicators on the other hand. Thus, the study aims to examine if stock market size and liquidity are determinants of capital accumulation. Design/methodology/approach – The analysis is based on annual times series from 1991 through 2017 spanning four African stock markets. The analysis utilizes the fixed-effect and random-effect econometric models. The Durbin–Wu–Hausman test is used to choose between the two models. Findings – The key results indicate that stock market capitalization is a positive determinant of gross fixed capital formation. The market value traded and turnover have no relationship with capital formation. Therefore, the role of stock African stock markets in promoting capital accumulation and, subsequently, industrial growth in Africa is seriously questioned. Originality/value – Only a handful of studies have examined the role of the African securities market in promoting capital accumulation. This study is unique in which it focuses on the leading stock markets in the four corners of Africa. The markets are from Egypt in the north, South Africa from the south, Nigeria from the west and Kenya from the east. These four markets account for a significant segment of all African markets.

The scientific study identified the importance of the activities of communal enterprises to provide the necessary services to individuals and legal entities in settlements. The article examines the issues of analysis of capital formation of communal enterprises and pays attention to the development of a system of indicators for assessing the efficiency of capital provision of enterprises in this sphere. It is determined that domestic enterprises generally have a small amount of equity. This circumstance is due to the formation of the prevailing amount of borrowed capital and growing dependence on external creditors. However, this trend is not always inherent in domestic enterprises. For example, the capital city’s enterprises in the field of improvement, school meals and the provision of services have the most risky capital structure. At such enterprises, the average financial risk index ranges from 2.41 to 3.35, which is evidence of a significant share of borrowed capital in the capital structure. This publication outlines the reasons for the low share of capitalized profit. Among the existing reasons can be highlighted the following: low profitability compared to investments in the development of the enterprise; high costs, both production and administrative; low performance of activities, which may be results of consequences of military aggression on the part of the Russian Federation, rising energy costs, depreciation of the national currency. The authors do not support the thesis on returning to the depreciation fund, but substantiate the position on the development of a depreciation policy at each communal enterprise, which would not only declare the methods of calculating depreciation, but also determine the directions of effective use of incoming cash flows from depreciation. Thus, domestic communal enterprises should have sufficient financial resources for the repair and maintenance of fixed assets, allowing to provide high-quality, qualified services and necessary goods to community residents.

The literature has mainly focused on analyzing the relationship of remittances with economic growth and social welfare, neglecting more complex aspects where remittances can have relevant implications. To contribute to the literature, the objective of this research is to examine the dynamic relationship between remittances, capital formation, structural transformation and economic growth in 15 Latin American countries during the period 1996–2019. To meet the objective, a panel vector autoregressive regression (PVAR) model was estimated, focusing on the analysis of the impulse-response function and variance decomposition. The results show a positive effect of remittances on economic growth and capital formation and a negative effect of remittances on structural transformation for initial periods and positive for later periods, framing a non-linear relationship. In addition, it was determined that structural transformation does not have a significant impact on economic growth. Finally, it was found that capital formation has a partial positive effect on economic growth. It is concluded that public policies should generate support mechanisms for the efficient channeling of these resources so that they become engines of growth.

AbstractThe key objective of this study is to investigate how capital formation and technological advancement affect foreign direct investment (FDI) generation in Bangladesh and whether money circulation has a positive or negative impact on FDI. This study has used time series data from 1972–2021, and the result of the unit root test indicates an autoregressive distributed lag (ARDL) model because of stationarity at levels I(0) and I(1). The cointegration test confirms the cointegration among the variables: in the short run and long run, capital formation and technological advancement have a positive impact on FDI; on the other hand, money circulation discourages FDI because of its negative coefficient. The speed of adjustment (CointEq(−1)) is 0.28%, which indicates the estimation moves toward an equilibrium condition from a disequilibrium condition. Causality shows there is bidirectional causality between FDI and money circulation, unidirectional causality between technology and FDI, bidirectional causality between money circulation and capital formation, and unidirectional causality between technology and capital formation. This finding suggests that capital formation should be a great consideration, and technology is also required to expand FDI volume. Further study would include considering other macroeconomic variables such as labor, human resources, and energy issues.

The key objective of this study is to investigate how capital formation and technological advancement affect foreign direct investment (FDI) generation in Bangladesh and whether money circulation has a positive or negative impact on FDI. This study has used time series data from 1972–2021, and the result of the unit root test indicates an autoregressive distributed lag (ARDL) model because of stationarity at levels I(0) and I(1). The cointegration test confirms the cointegration among the variables: in the short run and long run, capital formation and technological advancement have a positive impact on FDI; on the other hand, money circulation discourages FDI because of its negative coefficient. The speed of adjustment (CointEq(−1)) is 0.28%, which indicates the estimation moves toward an equilibrium condition from a disequilibrium condition. Causality shows there is bidirectional causality between FDI and money circulation, unidirectional causality between technology and FDI, bidirectional causality between money circulation and capital formation, and unidirectional causality between technology and capital formation. This finding suggests that capital formation should be a great consideration, and technology is also required to expand FDI volume. Further study would include considering other macroeconomic variables such as labor, human resources, and energy issues. [ABSTRACT FROM AUTHOR]

The liberalization of economies is aimed at boosting domestic growth through foreign investment and trade. The proponents of liberalization argue that opening up markets in developing economies provides access to capital to enhance production. However, proponents of the pollution haven hypothesis (PHH) argue that liberalization and trade agreements have led to the export of carbon-intensive production from wealthier countries to developing economies. The difference between the two outcomes lies in the nature of fixed assets built by developing countries. In this study, we examine the role of fixed capital formation on carbon emissions during two distinct periods of India's economic development. India liberalized its economy with trade reforms in 1991, thereby providing two distinct time periods of closed and open trade policies. The economic data during 1971–2021 is divided into two parts—before (1971–1990) and after (1991–2021) liberalization. Gross fixed capital formation (GFCF) is used as a measure of capital formation while carbon emissions are used to represent environmental impact. Auto-regressive distributed lag (ARDL) model is used for analysis. Results indicate that GFCF had no significant relationship with carbon emission before liberalization, whereas, there was a significant, positive impact post-liberalization. The study is of significance to policymakers in developing countries as it suggests a change in the capital formation towards low carbon-intensive products and services. It also strengthens the argument for investing capital in cleaner energy and technologies. [ABSTRACT FROM AUTHOR]

AbstractThe liberalization of economies is aimed at boosting domestic growth through foreign investment and trade. The proponents of liberalization argue that opening up markets in developing economies provides access to capital to enhance production. However, proponents of the pollution haven hypothesis (PHH) argue that liberalization and trade agreements have led to the export of carbon-intensive production from wealthier countries to developing economies. The difference between the two outcomes lies in the nature of fixed assets built by developing countries. In this study, we examine the role of fixed capital formation on carbon emissions during two distinct periods of India’s economic development. India liberalized its economy with trade reforms in 1991, thereby providing two distinct time periods of closed and open trade policies. The economic data during 1971–2021 is divided into two parts—before (1971–1990) and after (1991–2021) liberalization. Gross fixed capital formation (GFCF) is used as a measure of capital formation while carbon emissions are used to represent environmental impact. Auto-regressive distributed lag (ARDL) model is used for analysis. Results indicate that GFCF had no significant relationship with carbon emission before liberalization, whereas, there was a significant, positive impact post-liberalization. The study is of significance to policymakers in developing countries as it suggests a change in the capital formation towards low carbon-intensive products and services. It also strengthens the argument for investing capital in cleaner energy and technologies.

In the recent era, economic growth is not enough to represent sustainable development. Sustainable development has three dimensions (i.e., economic, social, and environment). This study estimated the economic, social, and environmental efficiency using data from 2000 to 2021. Input-oriented data envelopment analysis shows strong heterogeneity across developed (G-8) and developing countries (SAARC). There is a potential to increase economic and environmental efficiency in the G-8 and SAARC countries. The average economic efficiencies are 0.682 and 0.414, which implies the possibility of the same output (GDP/capita) by using 31.8% and 58.6% fewer inputs in G-8 and SAARC countries, respectively. The social efficiency score is more than 0.980 in both panels. The average environmental efficiencies are 0.712 and 0.724, which implies that selected countries can obtain the same output (CO2 emission reduction) by using 28.8% and 27.6% fewer inputs in G-8 and SAARC countries, respectively. The top three economically efficient countries are (a) the USA, the UK, and Japan in the G-8 panel and (b) Maldives, Sri Lanka, and Pakistan in the SAARC panel. The top three environmentally efficient countries are (a) France, the UK, and Italy in the G-8 panel and (b) Afghanistan, Nepal, and Bangladesh in the SAARC panel. It is recommended to adopt suitable policies to reduce emission, minimize waste, efficient utilization of resources, increase forest cover, and incentive for clean technologies. It is suggested to promote renewable energy through the provision of micro-credit to the poor, subsidizing renewable energy technologies, implementation of stringent environmental policies, and increasing awareness. It is essential to invest in eco-friendly and innovative technologies; thus, the government should encourage green practices in production. Human development is recommended to increase the living standard and healthy life. The government should invest in the health system and conduct seminars on general health awareness. Investment in basic infrastructure (drinking water, sanitation, and clean fuel) is essential to increase the living standard. The G-8 countries should provide financial and technological help to the SAARC countries. [ABSTRACT FROM AUTHOR]

This study attempts to explore the bond between Pakistani exports, gross capital formation, energy use and carbon dioxide emission. It uses the data from Pakistan spanning over a longer time horizon of 40 years ranging from 1981 to 2020. The results of ARDL analysis show that Pakistani exports have inverse relationship with CO2 emission in both short as well as long run and the carbon emission reverts to equilibrium at the speed of 54.9%. Increase in carbon emission also lowers export but the causal relationship is only from exports to carbon emission. Energy utilization results in higher carbon emission both in short as well as long run. Based on above findings this study suggests that Pakistan should increase its exports to improve the position of its balance of payment because higher exports do not harm environment in case of Pakistan.

In recent decades, countries have gone through a process of economic development that has resulted in environmental challenges becoming one of the most important concerns of policy-makers. Finding the primary sources of pollution is the first step in dealing with this problem. The current study focuses on this topic, highlighting the government's responsibility (compared to the private sector), since, theoretically, both government and private economic enterprises may be regarded as sources of pollution. This predicament is seen in the majority of the less-developed and emerging nations, where the governments are heavily involved in the economy. From the perspective that governments are both the cause of pollution and, at the same time, are compelled by their sovereign obligations to safeguard the environment, this debate is worthy of consideration. The present study indicates that Egypt is not excluded from this category. Since the high share of the government in the country's economy, apart from the adverse economic consequences, has created significant environmental challenges. In this article, after stating the situation of pollutants in Egypt, considering the flow of production and release of pollution in recent years, the relative share of government enterprises in the production of pollution has been investigated. The results indicate that the government's contribution to the production of pollution is very significant. [ABSTRACT FROM AUTHOR]

This paper examines the relationship between energy consumption, economic growth, and environmental degradation in Indonesia in 1965-2018 with the inclusion of gross capital formation and trade openness as relevant factors. The autoregressive distributed lag model to cointegration, fully modified ordinary least squares, dynamic ordinary least squares, and canonical cointegrating regression approach applied to estimate this relationship. The result of cointegration confirms the existence of a cointegration relationship between energy consumption, economic growth, gross fixed capital formation, trade openness, and environmental degradation. The empirical result, in the long run, indicates that energy consumption, economic growth, and trade openness have a positive relationship with environmental degradation. However, the gross fixed capital formation was found to be negatively associated with environmental degradation. It implies that gross fixed capital formation plays a pivotal role in reducing environmental degradation in Indonesia. The error correction model coefficient indicates that the deviation of CO2 emissions from its long run equilibrium will be adjusted by 0.53% through the short run channel per annum. The findings of this paper propose implementing an energy policy that focuses on energy from environmentally friendly sources. It is also recommended to reverse the effect of openness to the international markets to improve and facilitate access to advanced and environmentally friendly technologies to mitigate environmental degradation and improve environmental quality.

Policymakers worldwide have been actively involved in the past few decades to ensure that human diseases are kept to a minimum. A new econometric technique, dynamic ARDL simulations, was used in this study to estimate and model the influence of health expenditures on investment in non-financial assets in China from 1990 to 2019. An economic growth framework, gross capital formation, information and communication technologies, foreign direct investment, and carbon emissions are all considered in the empirical model—the analysis produced interesting results. First, the estimates show that health expenditures and foreign direct investment have a significant long-run decreasing impact on non-financial assets in China by 0.451 and 0.234%. Second, economic growth and gross capital formation significantly affect the economy's non-financial assets. Likewise, ICT and carbon emissions also positively correlate with an explained variable in China. The findings show that the economy is becoming less investment-intensive as health spending and foreign direct investment rise. The study develops important policy implications for the selected country to achieve desired targets based on the empirical results.