Energy infrastructure and foreign direct investment in China
China's integration into the world economy, and maintaining its rapid economic growth, demand more energy with a prominent concern of reducing carbon footprints. Keeping in view the shortcomings in previous studies, we investigate the relationship between energy infrastructure and foreign direct investment in China in the framework of the ARDL and VECM approaches. We found that energy positively affects FDI, while the reverse effect does not hold. FDI does not affect the energy sector. Policy implications can be drawn from this study, such as technological diffusion from FDI to enhance energy efficiency and reduce carbon footprints.
energy consumption, FDI, ARDL
O47 , F21 , C22
This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License