Skip to main content

Advertisement

SpringerLink
Log in

Does foreign private investment affect the clean industrial environment? Nexus among foreign private investment, CO2 emissions, energy consumption, trade openness, and sustainable economic growth

  • Review Article
  • Published:
Environmental Science and Pollution Research Aims and scope Submit manuscript

Abstract

This study examines to what extent foreign private investment (FPI) affects the clean industrial environment and sustainable economic growth through developed countries investment in China. Moreover, this study investigates an association among FPI, CO2 emission, energy consumption, trade openness, and sustainable economic growth. This study uses random effects and generalized least squares (GLS) and panel VAR estimators for data analysis. The results show that China’s economy has a great positive impact on the location and choice of investment in domestic markets in emerging countries and developed countries. In addition, investment in emerging and developed economies has increased the contribution of domestic enterprises and environmental sustainability to the national economy. The further results show that foreign private investment and gross domestic investment have positive impact on sustainable economic growth.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

Data Availability

The data is available on request from corresponding author.

References

  • Almfraji MA, Almsafir MK (2014) Foreign direct investment and economic growth literature review from 1994 to 2012. Procedia Soc Behav Sci 129:206–213

    Article  Google Scholar 

  • Arif, A., Sadiq, M., Shabbir, M. S., Yahya, G., Zamir, A., & Bares Lopez, L. (2020). The role of globalization in financial development, trade openness and sustainable environmental-economic growth: evidence from selected South Asian economies. J Sustain Finance Invest 1–18.

  • Anser, M. K., Shabbir, M. S., Tabash, M. I., Shah, S. H. A., Ahmad, M., Peng, M. Y. P., & Lopez, L. B. (2021). Do renewable energy sources improve clean environmental-economic growth? Empirical investigation from South Asian economies. Energy Explor Exploit 01445987211002278.

  • Anser, M. K., Usman, M., Sharif, M., Bashir, S., Shabbir, M. S., Yahya Khan, G., & Lopez, L. B. (2021). The dynamic impact of renewable energy sources on environmental economic growth: evidence from selected Asian economies. Environ Sci Pollut Res 1–13.

  • Anser, M. K., Usman, M., Godil, D. I., Shabbir, M. S., Tabash, M., Ahmad, M., ... & Lopez, L. B. (2021). Does air pollution affect clean production of sustainable environmental agenda through low carbon energy financing? Evidence from ASEAN countries. Energy Environ 0958305X211007854.

  • Arslan, Z., Kausar, S., Kannaiah, D., Shabbir, M. S., Khan, G. Y., & Zamir, A. (2021). The mediating role of green creativity and the moderating role of green mindfulness in the relationship among clean environment, clean production, and sustainable growth. Environ Sci Pollut Res 1–15.

  • Asghar, Z. (2008). Energy-GDP relationship: a causal analysis for the five countries of South Asia. Appl Econ Int Dev 8(1).

  • Atilgan E, Kilic D, Ertugrul HM (2017) The dynamic relationship between health expenditure and economic growth: is the health-led growth hypothesis valid for Turkey? Eur J Health Econ 18(5):567–574

    Article  Google Scholar 

  • Cameron, A. C., & Trivedi, P. K. (2013). Regression analysis of count data (Vol. 53). Cambridge university press.

  • Chaabouni S, Zghidi N, Mbarek MB (2016) On the causal dynamics between CO2 emissions, health expenditures and economic growth. Sustain Cities Soc 22:184–191

    Article  Google Scholar 

  • Chaabouni S, Saidi K (2017) The dynamic links between carbon dioxide (CO2) emissions, health spending and GDP growth: a case study for 51 countries. Environ Res 158:137–144

    Article  CAS  Google Scholar 

  • Dalgaard CJ, Hansen H (2001) On aid, growth and good policies. J Dev Stud 37(6):17–41

    Article  Google Scholar 

  • Dahl, C. (2015). International energy markets: understanding pricing, policies, and profits. PennWell Books, LLC.

  • Ernst A, Biss KH, Shamon H, Schumann D, Heinrichs HU (2018) Benefits and challenges of participatory methods in qualitative energy scenario development. Technol Forecast Soc Chang 127:245–257

    Article  Google Scholar 

  • Fadilah A, Ananda CF, Kaluge D (2018) A panel approach: how does government expenditure influence human development index? Jurnal Ekonomi Dan Studi Pembangunan 10(2):130–139

    Google Scholar 

  • Hilde L (2011) Quality excellence begins with evaluation of organizational change readiness. California State University, Dominguez Hills

    Google Scholar 

  • Jun W, Mughal N, Zhao J, Shabbir MS, Niedbała G, Jain V, Anwar A (2021) Does globalization matter for environmental degradation? Nexus among energy consumption, economic growth, and carbon dioxide emission. Energy Policy 153:112230

    Article  Google Scholar 

  • Khan, M. B., Saleem, H., Shabbir, M. S., &Huobao, X. (2021). The effects of globalization, energy consumption and economic growth on carbon dioxide emissions in South Asian countries. Energy Environ 0958305X20986896.

  • Khan I, Hou F (2021a) Does multilateral environmental diplomacy improve environmental quality? The case of the United States. Environ Sci Pollut Res 28(18):23310–23322

    Article  Google Scholar 

  • Khan I, Hou F (2021b) The dynamic links among energy consumption, tourism growth, and the ecological footprint: the role of environmental quality in 38 IEA countries. Environ Sci Pollut Res 28(5):5049–5062

    Article  Google Scholar 

  • Khan I, Hou F, Irfan M, Zakari A, Le HP (2021) Does energy trilemma a driver of economic growth? The roles of energy use, population growth, and financial development. Renew Sustain Energy Rev 146:111157

    Article  Google Scholar 

  • Khan I, Hou F, Zakari A, Tawiah VK (2021) The dynamic links among energy transitions, energy consumption, and sustainable economic growth: a novel framework for IEA countries. Energy 222:119935

    Article  Google Scholar 

  • Khan I, Hou F, Le HP (2021) The impact of natural resources, energy consumption, and population growth on environmental quality: fresh evidence from the United States of America. Sci Total Environ 754:142222

    Article  CAS  Google Scholar 

  • Kurt S (2015) Government health expenditures and economic growth: a Feder-Ram approach for the case of Turkey. Int J Econ Financ Issues 5(2):441–447

    Google Scholar 

  • Li Q, Cherian J, Shabbir MS, Sial MS, Li J, Mester I, Badulescu A (2021) Exploring the relationship between renewable energy sources and economic growth. The case of SAARC countries. Energies 14(3):520

    Article  Google Scholar 

  • Liu Y, Saleem S, Shabbir R, Shabbir MS, Irshad A, Khan S (2020) The relationship between corporate social responsibility and financial performance: a moderate role of fintech technology. Environ Sci Pollut Res. https://doi.org/10.1007/s11356-020-11822-9

    Article  Google Scholar 

  • Lu ZN, Chen H, Hao Y, Wang J, Song X, Mok TM (2017) The dynamic relationship between environmental pollution, economic development and public health: evidence from China. J Clean Prod 166:134–147

    Article  Google Scholar 

  • Lyu, L., Khan, I., & Zakari, A. (2021). A study of energy investment and environmental sustainability nexus in China: a bootstrap replications analysis. Environ Sci Pollut Res 1–9.

  • Muhammad, I., Shabbir, M. S., Saleem, S., Bilal, K., & Ulucak, R. (2020). Nexus between willingness to pay for renewable energy sources: evidence from Turkey. Environ Sci Pollut Res 1–15.

  • Muhammad, I., Shabbir, M. S., Saleem, S., Bilal, K., & Ulucak, R. (2021). Nexus between willingness to pay for renewable energy sources: Evidence from Turkey. Environmental Science and Pollution Research, 28(3), 2972-2986.

  • Oni LB (2014) Analysis of the growth impact of health expenditure in Nigeria. IOSR J Econ Finance 3(1):77–84

    Article  Google Scholar 

  • Ozturk I (2010) A literature survey on energy–growth nexus. Energy Policy 38(1):340–349

    Article  Google Scholar 

  • Panayotou, T. (1993). Green markets: the economics of sustainable development.

  • Prasetyo AD, Zuhdi U (2013) The government expenditure efficiency towards the human development. Procedia Econ Finance 5:615–622

    Article  Google Scholar 

  • Qureshi, M. A. (2009). Human development, public expenditure and economic growth: a system dynamics approach. Int J Soc Econ.

  • Romer, P. M. (1988). Capital accumulation in the theory of long run growth (no. 123). University of Rochester-Center for Economic Research (RCER).

  • Saleem, H., Khan, M. B., & Shabbir, M. S. (2019). The role of financial development, energy demand, and technological change in environmental sustainability agenda: evidence from selected Asian countries. Environ Sci Pollut Res 1–15.

  • Shabbir MS, Yaqoob N (2019) The impact of technological advancement on total factor productivity of cotton: a comparative analysis between Pakistan and India. J Econ Struct 8(1):27

    Article  Google Scholar 

  • Shabbir, M. S. (2016). Contributing factors of inland investment. Global J Manag Bus Res.

  • Shabbir, M. S., & Wisdom, O. (2020). The relationship between corporate social responsibility, environmental investments and financial performance: evidence from manufacturing companies. Environ Sci Pollut Res 1-12https://doi.org/10.1007/s11356-020-10217-0

  • Shabbir MS (2018) The combine synergies between Islamic micro finance portfolio and various structured finance solutions. Global Rev Islamic Econ Bus 6(2):117–130

    Article  Google Scholar 

  • Shabbir MS, Muhammad I (2019) The dynamic impact of foreign portfolio investment on stock prices in Pakistan. Transnatl Corp Rev 11(2):166–178

    Google Scholar 

  • Tawiah VK, Zakari A, Khan I (2021) The environmental footprint of China-Africa engagement: an analysis of the effect of China-Africa partnership on carbon emissions. Sci Total Environ 756:143603

    Article  CAS  Google Scholar 

  • Yu, S., Sial, M. S., Shabbir, M. S., Moiz, M., Wan, P., & Cherian, J. (2020). Does higher population matter for labour market? Evidence from rapid migration in Canada. Econ Res-Ekon Istraživanja, 1–18.

  • Wang C (2011) Sources of energy productivity growth and its distribution dynamics in China. Resour Energy Econ 33(1):279–292

    Article  Google Scholar 

  • Zaidi S, Saidi K (2018) Environmental pollution, health expenditure and economic growth in the Sub-Saharan Africa countries: panel ARDL approach. Sustain Cities Soc 41:833–840

    Article  Google Scholar 

  • Yikun, Z., Gul, A., Saleem, S., Shabbir, M. S., Bilal, K., &Abbasi, H. M. (2021). The relationship between renewable energy sources and sustainable economic growth: evidence from SAARC countries. Environ Sci Pollut Res 1–10.

  • Zweig D, Jianhai B (2005) China’s global hunt for energy. Foreign Aff 84(5):25. https://doi.org/10.2307/2003170

    Article  Google Scholar 

Download references

Funding

Soft Science Project of Zhejiang Department of Science and Technology, 2020C35063.

Author information

Authors and Affiliations

  1. School of Business Administration, Zhejiang Shuren University, Hangzhou, China

    Mina Ge

  2. C. H. Sandage School of Business, Graceland University, Lamoni, IA, 50140, USA

    Desti Kannaiah

  3. Institute of Education Sciences, Wuhan University, Wuhan, China

    Junrong Li

  4. Institute of Business and Management Sciences, The University of Agriculture Peshawar, Peshawar, Pakistan

    Nasir Khan

  5. Department of Management Sciences, University of Lahore, Lahore, Pakistan

    Malik Shahzad Shabbir

  6. Department of Management Sciences, Comsat University, Lahore Campus, Lahore, Pakistan

    Kanwal Bilal

  7. College of Business, Al-Ain University, Al Ain, UAE

    Mosab I. Tabash

Authors
  1. Mina Ge
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Desti Kannaiah
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Junrong Li
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Nasir Khan
    View author publications

    You can also search for this author in PubMed Google Scholar

  5. Malik Shahzad Shabbir
    View author publications

    You can also search for this author in PubMed Google Scholar

  6. Kanwal Bilal
    View author publications

    You can also search for this author in PubMed Google Scholar

  7. Mosab I. Tabash
    View author publications

    You can also search for this author in PubMed Google Scholar

Contributions

Dr. Mina has completed the data analysis part, Dr. Desti completed the “Introduction” section, Dr. Junrong completed the “Review of literature” section, Mr. Nasir wrote “Methodology” section, Mr. Malik Shahzad interpreted the data analysis section, Miss Kanwal wrote conclusion, and Dr. Mosab wrote abstract parts and formatted the paper as per journal requirements.

Corresponding author

Correspondence to Junrong Li.

Ethics declarations

Ethics approval and consent to participate

This study did not use any kind of human participants or human data, which require any kind of approval.

Consent for publication

Our study did not use any kind of individual data such as video, images etc.

Competing interests

The authors declare no competing interests.

Additional information

Responsible Editor: Nicholas Apergis

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Ge, M., Kannaiah, D., Li, J. et al. Does foreign private investment affect the clean industrial environment? Nexus among foreign private investment, CO2 emissions, energy consumption, trade openness, and sustainable economic growth. Environ Sci Pollut Res 29, 26182–26189 (2022). https://doi.org/10.1007/s11356-022-18814-x

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11356-022-18814-x

Keywords

Search

Navigation