Can foreign direct investment harness energy consumption in China? A time series investigation
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...
| Main Authors: | , , , |
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| Format: | Journal Article |
| Published: |
Elsevier
2017
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| Online Access: | http://hdl.handle.net/20.500.11937/55720 |
| _version_ | 1848759690637344768 |
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| author | Salim, Ruhul Yao, Y. Chen, G. Zhang, L. |
| author_facet | Salim, Ruhul Yao, Y. Chen, G. Zhang, L. |
| author_sort | Salim, Ruhul |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | 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. |
| first_indexed | 2025-11-14T10:03:54Z |
| format | Journal Article |
| id | curtin-20.500.11937-55720 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T10:03:54Z |
| publishDate | 2017 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-557202017-11-09T05:53:29Z Can foreign direct investment harness energy consumption in China? A time series investigation Salim, Ruhul Yao, Y. Chen, G. Zhang, L. 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. 2017 Journal Article http://hdl.handle.net/20.500.11937/55720 10.1016/j.eneco.2017.05.026 Elsevier restricted |
| spellingShingle | Salim, Ruhul Yao, Y. Chen, G. Zhang, L. Can foreign direct investment harness energy consumption in China? A time series investigation |
| title | Can foreign direct investment harness energy consumption in China? A time series investigation |
| title_full | Can foreign direct investment harness energy consumption in China? A time series investigation |
| title_fullStr | Can foreign direct investment harness energy consumption in China? A time series investigation |
| title_full_unstemmed | Can foreign direct investment harness energy consumption in China? A time series investigation |
| title_short | Can foreign direct investment harness energy consumption in China? A time series investigation |
| title_sort | can foreign direct investment harness energy consumption in china? a time series investigation |
| url | http://hdl.handle.net/20.500.11937/55720 |