Can foreign direct investment harness energy consumption in China? A time series investigation
Access Status
Authors
Date
2017Type
Metadata
Show full item recordCitation
Source Title
ISSN
School
Collection
Abstract
This study assesses the long-run relationship and short-run dynamics between foreign direct investment (FDI) and energy consumption in China. Applying the bounds testing approach to annual data from 1982 to 2012, we find that a stable FDI–energy nexus exists in the long run and a 1% increase in FDI reduces energy consumption by 0.21%. However, this study shows a positive association between FDI and energy consumption in the short run, attributing to the dominance of the scale effect. Our results remain robust to different measurements and estimators. It is suggested that the Chinese government shall support the inward FDI in the tertiary and energy sectors and strengthen local absorptive capacities to fully internalize FDI-related knowledge spillovers in energy conservation.
Related items
Showing items related by title, author, creator and subject.
-
Rafiq, Shuddhasattwa (2009)It is now well established in the literature that oil consumption, oil price shocks, and oil price volatility may impact the economic activities negatively. Studies identifying the relationship between energy and/or oil ...
-
Aydin, G; Jang, Hyong Doo ; Topal, Erkan (2016)The world’s highest energy consumer (HC) countries currently constitute around 62% of the world energy consumption. Therefore, it is highly important to model their energy consumption to obtain an estimated profile of ...
-
Rustandi, Ferry (2009)Increasing energy consumption in Australian transport sector, rapidly depleting amount of Australian oil reserves, and the environmental concerns that arise from the associated greenhouse gas emissions produced by the ...