China’s outward FDI and environmental sustainability in belt and road countries: does the quality of institutions matter?

This study aims to unravel the environmental effects of institutional quality in relationship with China’s Foreign Direct Investment (FDI) in Belt and Road Initiative (BRI) countries. The empirical analysis is conducted over the period 2003–2018, using the System-GMM approach with the Windmeijer finite-sample correction. We infer that China’s FDI has a detrimental effect on environmental quality, which validates the ‘pollution haven hypothesis’ in the BRI region. Importantly, the interaction effect of China’s FDI with indicators of institutional quality yields negative and significant results. This entails that strong institutions can boost the quality of the environment through FDI attractiveness. In further assessment, the threshold levels of institutional quality are calculated, beyond which China’s FDI can reduce carbon emissions in the BRI region. This substantiates both the pollution haven and pollution halo hypotheses. The study underscores the importance of institutional reform in the quest for sustainable development, owing to the fact that most economies prioritize FDI-led growth strategies.

• Publication year

  2022

• Venue

  Journal of Environmental Planning and Management

• Publication date

  2022-02-11

• Fields of study

  Not labeled

• Identifiers
  DOI 10.1080/09640568.2021.2008883
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

• The potential for China's outward foreign direct investment and its determinants: A comparative study of carbon-intensive and non-carbon-intensive sectors along the Belt and Road.

  2021influential reference
• What is biodiversity conservation?

  2021influential reference
• Heterogeneous effects of remittances and institutional quality in reducing environmental deficit in the presence of EKC hypothesis: A global study with the application of panel quantile regression

  2021cited by this paper
• Investigating the pollution haven hypothesis in oil and non-oil sub-Saharan Africa countries: Evidence from quantile regression technique

  2021cited by this paper
• Does the quality of institutions and education strengthen the quality of the environment? Evidence from a global perspective

  2021cited by this paper
• Rule of law and CO2 emissions: A comparative analysis across 65 belt and road initiative(BRI) countries

  2021influential reference
• THE ENVIRONMENTAL KUZNETS CURVE FOR CARBON DIOXIDE EMISSIONS AND TRADE ON BELT AND ROAD INITIATIVE COUNTRIES: A SPATIAL PANEL DATA APPROACH

  2020cited by this paper
• Does outward foreign direct investment (OFDI) affect the home country’s environmental quality? The case of China

  2020cited by this paper
• Is the Pollution Haven Hypothesis (PHH) valid for Turkey?

  2020cited by this paper
• The impact of economic factors and governance on greenhouse gas emission

  2020cited by this paper
• The repercussions of foreign direct investment, renewable energy and health expenditure on environmental decay? An econometric analysis of B&RI countries

  2020cited by this paper
• Foreign investment and air pollution: Do good governance and technological innovation matter?

  2020cited by this paper
• General Diagnostic Tests for Cross Section Dependence in Panels

  2020cited by this paper
• Institutional quality and CO2 emission-output relations: The case of Asian countries.

  2020cited by this paper
• Would environmental regulation improve the greenhouse gas benefits of natural gas use? A Chinese case study

  2020cited by this paper
• The influence of corruption on environmental sustainability in the developing economies of Southern Africa

  2020cited by this paper
• The importance of renewable energy consumption and FDI inflows in reducing environmental degradation: Bootstrap ARDL bound test in selected 9 countries

  2020cited by this paper
• Does the quality of institutions modify the economic growth-carbon dioxide emissions nexus? Evidence from a group of emerging and developing countries

  2020cited by this paper
• Effect of urbanization and international trade on CO2 emissions across 65 belt and road initiative countries

  2020cited by this paper
• Emission reduction effects of the green energy investment projects of China in belt and road initiative countries

  2020cited by this paper
• Foreign direct investment and renewable energy in climate change mitigation: Does governance matter?

  2020influential reference
• Environmental Impacts

  2020cited by this paper
• Cleaning the air, protecting the climate: Policy, legal and institutional nexus to reduce black carbon emissions in China

  2019cited by this paper
• Does Political Stability Hinder Pollution? Evidence From Developing States

  2019cited by this paper
• Effect of foreign direct investments, economic development and energy consumption on greenhouse gas emissions in developing countries.

  2019influential reference
• The environmental impacts of financial development in OECD countries: a panel GMM approach

  2019cited by this paper
• Financial development and environment in South Asia: the role of institutional quality

  2019influential reference
• Natural resource or market seeking motive of China’s FDI in asia? New evidence at income and sub-regional level

  2019cited by this paper
• Heterogeneous impacts of renewable energy and environmental patents on CO2 emission - Evidence from the BRIICS.

  2019cited by this paper
• Examining foreign direct investment and environmental pollution linkage in Asia

  2019cited by this paper
• The carbon footprint of the U.S. multinationals’ foreign affiliates

  2019cited by this paper
• Scale, composition, and technique effects through which the economic growth, foreign direct investment, urbanization, and trade affect greenhouse gas emissions

  2019cited by this paper
• Impacts of economic indicators on environmental degradation: Evidence from MENA countries

  2019cited by this paper
• Fossil fuels, foreign direct investment, and economic growth have triggered CO2 emissions in emerging Asian economies: Some empirical evidence

  2019cited by this paper
• The effect of corruption on carbon emissions in developed and developing countries: empirical investigation of a claim

  2019influential reference
• Role of financial development, economic growth & foreign direct investment in driving climate change: A case of emerging ASEAN.

  2019cited by this paper
• The impact of FDI in the OECD manufacturing sector on CO2 emission: Evidence and policy issues

  2019cited by this paper
• A road to enhancements in natural gas use in Iran: A multivariate modelling approach

  2019cited by this paper
• Analyzing the role of governance in CO2 emissions mitigation: The BRICS experience

  2019cited by this paper
• Per capita income, trade openness, urbanization, energy consumption, and CO2 emissions: an empirical study on the SAARC Region

  2019cited by this paper
• Environmental Impacts of Infrastructure Development under the Belt and Road Initiative

  2019cited by this paper
• Economic and Environmental Performance of Post-Communist Transition Economies

  2019cited by this paper
• Evaluating the environmental effects of economic openness: evidence from SAARC countries

  2019cited by this paper
• An approach to the pollution haven and pollution halo hypotheses in MINT countries

  2019cited by this paper
• Interrelationships among foreign direct investments, renewable energy, and CO2 emissions for different European country groups: a panel ARDL approach

  2019cited by this paper
• Rising environmental degradation and impact of foreign direct investment: An empirical evidence from SAARC region.

  2019cited by this paper
• Sustainability comes from within: carbon dioxide emissions, FDI origin factor and institutional qualities in developing countries

  2019cited by this paper
• Foreign direct Investment–CO2 emissions nexus in Middle East and North African countries: Importance of biomass energy consumption

  2019cited by this paper
• The impact of innovation and technology investments on carbon emissions in selected organisation for economic Co-operation and development countries

  2019cited by this paper
• Corruption, climate and the energy-environment-growth nexus

  2019cited by this paper
• Regional differences in impacts of economic growth and urbanization on air pollutants in China based on provincial panel estimation

  2019cited by this paper
• Effect of FDI on Pollution in China: New Insights Based on Wavelet Approach

  2018cited by this paper
• Innovation for sustainability: The impact of R&D spending on CO2 emissions

  2018cited by this paper
• The Relationship Between Foreign Direct Investment and CO 2 Emissions Across a Panel of Countries

  2018cited by this paper
• Will developing countries become pollution havens for developed countries? An empirical investigation in the Belt and Road

  2018cited by this paper
• Total-Factor Energy Efficiency in BRI Countries: An Estimation Based on Three-Stage DEA Model

  2018cited by this paper
• The effects of FDI and energy consumption on environmental pollution in predominantly resource-based economies of the GCC

  2018cited by this paper
• Influence of foreign direct investment on indicators of environmental degradation

  2018cited by this paper
• The dynamic links between CO2 emissions, energy consumption and economic development in the countries along "the Belt and Road".

  2018cited by this paper
• Modelling the relationship between poverty, environment, and institutions: a panel data study

  2018cited by this paper
• Estimation of Environmental Kuznets Curve for CO2 emission: Role of renewable energy generation in India

  2018cited by this paper
• The trade-environment nexus in light of governance: a global potential

  2018cited by this paper
• Impact of financial development and economic growth on environmental quality: an empirical analysis from Belt and Road Initiative (BRI) countries

  2018cited by this paper
• Does foreign direct investment affect environmental pollution in China's cities? A spatial econometric perspective.

  2018influential reference
• Biodiversity conservation should be a core value of China’s Belt and Road Initiative

  2018influential reference
• How foreign direct investment affects CO 2 emission levels in the Chinese manufacturing industry: Evidence from panel data

  2018cited by this paper
• Environmental challenges for the Belt and Road Initiative

  2018cited by this paper
• Does finance affect environmental degradation: evidence from One Belt and One Road Initiative region?

  2018cited by this paper
• China’s Contributions to Global Green Energy and Low-Carbon Development: Empirical Evidence under the Belt and Road Framework

  2018cited by this paper
• The moderating role of corruption between economic growth and CO2 emissions: Evidence from BRICS economies

  2018cited by this paper
• The impacts of renewable energy and technological innovation on environment-energy-growth nexus: New evidence from a panel quantile regression

  2018cited by this paper
• Foreign direct investment and air pollution in Asian countries: does institutional quality matter?

  2018influential reference
• Not looking for trouble: Understanding large-scale Chinese overseas investment by sector and ownership

  2017cited by this paper
• Central Asian ‘Characteristics’ on China’s New Silk Road: The Role of Landscape and the Politics of Infrastructure

  2017cited by this paper
• Effects of energy production and CO2 emissions on economic growth in Iran: ARDL approach

  2017cited by this paper
• Quality of institution and the FEG (forest, energy intensity, and globalization) -environment relationships in sub-Saharan Africa

  2017cited by this paper
• Renewable Energy Consumption and Agriculture: Evidence for Cointegration and Granger causality for Tunisian Economy

  2017cited by this paper
• Impact of urbanization on energy related CO2 emission at different development levels: Regional difference in China based on panel estimation

  2017cited by this paper
• Income distribution and CO2 emission: A comparative analysis for China and India

  2017cited by this paper
• The effect of urbanization, energy consumption, and foreign direct investment on the carbon dioxide emission in the SSEA (South and Southeast Asian) region

  2017cited by this paper
• Looking at China’s Belt and Road Initiative from the Central Asian Perspective

  2017cited by this paper
• Does economic, financial and institutional developments matter for environmental quality? A comparative analysis of EU and MEA countries.

  2017influential reference
• Investigating the pollution haven hypothesis in Ghana: An empirical investigation

  2017cited by this paper
• Economic and environmental impacts of foreign direct investment in China: A spatial spillover analysis

  2017cited by this paper
• Economic growth, CO2 emissions, renewable waste and FDI relation in Pakistan: New evidences from 3SLS.

  2017cited by this paper
• Do pollution abatement expenditures lead to higher productivity growth? Evidence from Greek manufacturing industries

  2017cited by this paper
• China’s new Eurasian ambitions: the environmental risks of the Silk Road Economic Belt

  2017cited by this paper
• Institutional Quality and Air Pollution: International Evidence

  2017cited by this paper
• The Determinants of Chinese Outward FDI in Countries Along “One Belt One Road”

  2017cited by this paper
• The impact of financial development and trade on environmental quality in Iran

  2017cited by this paper
• The impact of foreign direct investment on CO2 emissions in Turkey: new evidence from cointegration and bootstrap causality analysis

  2017cited by this paper
• Foreign direct investment and environmental sustainability in Africa: The role of institutions and governance

  2017cited by this paper
• Trade openness and environmental quality: International evidence

  2016cited by this paper
• Do foreign direct investment and renewable energy consumption affect the CO2 emissions? New evidence from a panel ARDL approach to Kyoto Annex countries

  2016cited by this paper
• How urbanization affects CO2 emissions in Malaysia? The application of STIRPAT model

  2016cited by this paper
• The impact of trade openness on global carbon dioxide emissions: Evidence from the top ten emitters among developing countries

  2016cited by this paper
• Institutional Quality and CO2 Emission–Trade Relations: Evidence from Sub-Saharan Africa

  2016cited by this paper
• Does foreign direct investment lead to lower CO2 emissions? Evidence from a regional analysis in China

  2016cited by this paper
• Determinants of CO2 emissions in the European Union: The role of renewable and non-renewable energy

  2016cited by this paper
• A new look at the FDI–income–energy–environment nexus: Dynamic panel data analysis of ASEAN

  2016cited by this paper

• The Impact of Coordinated Two-Way FDI Development on Carbon Emissions in Belt and Road Countries: An Empirical Analysis Based on the STIRPAT Model and GMM Estimation

  2025cites this paper
• The role of environmental poverty in shaping green growth in the One Belt One Road countries

  2025cites this paper
• Analyzing the Environmental Kuznets and Philips Curves in Europe and African Regions: Determining the Role of Chinese FDI, Institutional Qualities, and Access to Electricity

  2025cites this paper
• Do environmental taxes and green technological innovation represent the crux of environmental sustainability? Insights from OECD region with MMQR approach

  2025cites this paper
• Towards sustainability: does ‘going global’ promote firms greener? ——evidence from OFDI of China’s listed firms

  2025cites this paper
• Impact of FDI on Sustainable Growth in Belt and Road Economies

  2024cites this paper
• The Interaction of Institutional Quality, Economic Complexity, and Carbon Dioxide Emission: An Empirical Examination for China and Pakistan

  2024cites this paper
• Can carbon emission trading improve corporate sustainability? An analysis of green path and value transformation effect of pilot policy

  2024cites this paper
• The impact of the Belt and Road Initiative on cities’ capacity for green development—based on data from 280 Chinese cities

  2024cites this paper
• Measuring the Non-linear Effect of Chinese Investment Flows on the Sustainable Environment of BRI Countries: Evidence from the Lens of Asymmetric Approaches

  2024cites this paper
• The effect of natural capital, regional development, FDI, and natural resource rent on environmental performance: The Mediating role of green innovation

  2024cites this paper
• Achieving net-zero emission target in Africa: Are sustainable energy innovations and financialization crucial for environmental sustainability of sub-Saharan African state?

  2024cites this paper
• Digital divide and environmental pressure: A countermeasure on the embodied carbon emissions in FDI

  2024cites this paper
• Racing to the Bottom? Chinese Foreign Direct Investment and Collective Labor Rights

  2023cites this paper
• The Nexus Between Air Pollution and Outward Foreign Direct Investment

  2023cites this paper
• An Empirical Study on the Impact of Chinese OFDI on the Global Value Chain Positions of Countries Along the Belt and Road and Threshold Effects

  2023cites this paper
• Modeling the Relationship Between Environmental Regulations and Stock Market Growth in China: Evidence Beyond Symmetry

  2023cites this paper
• How does outward foreign direct investment influence manufacturing industry sustainable growth in China?

  2023cites this paper
• Asymmetric influence of China's outward FDI and exports on trade-adjusted resources footprint in belt and road node countries: Moderating role of governance

  2023cites this paper
• Institutional Differences and the Choice of Outward Foreign Direct Investment Mode under the “Belt and Road” Initiative: Experience Analysis Based on China’s Manufacturing Enterprises

  2023cites this paper
• Evaluating the role of innovation in hybrid electric vehicle-related technologies to promote environmental sustainability in knowledge-based economies

  2023cites this paper
• The spillover effects of outward FDI on environmental sustainability in developing countries: exploring the channels of home country institutions and human capital

  2023influential citation
• The carbon footprint of Chinese multinationals’ foreign affiliates

  2023cites this paper
• China’s Outward Foreign Direct Investment and the Environmental Performance of the “Belt and Road Initiative” Countries

  2023cites this paper
• The future of green transportation: evaluating the impact of innovation in hybrid electric vehicles relating technologies on carbon dioxide emissions in Asia’s top knowledge-based economies

  2023cites this paper
• Does innovation in ocean energy generations-related technologies in G7 countries reduce carbon dioxide emissions? Role of international collaboration in green technology development and commercial and monetary policies

  2022cites this paper
• Strategic pathways to combating remittance-induced carbon emissions; the imperatives of renewable energy, structural transformations, urbanization and human development

  2022cites this paper
• Environmental Regulation and Green Technology Innovation: Evidence from China’s Heavily Polluting Companies

  2022cites this paper