Work

Evaluating the Impact of Chinese FDI in the Energy Sector on Green GDP Growth: A Spatial Econometric Analysis of MENA Countries

Year: 2024

Type: article

Abstract: This study analyzes the impact of Chinese foreign direct investment (FDI) in the energy sector on the green GDP (GGDP) growth of seven Middle East and North Africa (MENA) countries based on data from 2009 to 2019. Using panel regression analysis, the study focuses on the effects of FDI, economic development level, population size, energy consumption structure, environmental regulation intensity, government fiscal expenditure, and the KOF Economic Globalization Index on GGDP growth. By comparing fixed-effects and random-effects models and applying the Hausman test to select the most appropriate model, the research indicates that the random-effects model is the most suitable. The results show that FDI, economic development level, and population size have significant positive effects on GGDP, while shifts in energy consumption structure also promote sustainable economic growth. In contrast, environmental regulation intensity and the globalization index have no significant impact on GGDP, suggesting that GGDP growth in MENA countries relies more on internal economic policies and the efficiency of resource allocation.

Source: Frontiers in Business Economics and Management

DOI: 10.54097/56e9ph65

Authors: Weiran Zhang, Yuhan Wang, Yihan Li

Institutions: Yanbian University, Fudan University, Beijing Foreign Studies University

Language: English

Topic: Energy, Environment, Economic Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Affordable and clean energy, Decent work and economic growth, Industry, innovation and infrastructure, Climate action

Open Access status: diamond

Funder: Yuhan