Abstract

Introduction

Review of literature

Methodology

Descriptive analysis

Correlation analysis

Conclusion and policy implications

Declarations

References

Abstract

     This study examines to what extent foreign private investment (FPI) affects the clean industrial environment and sustainable economic growth through developed countries investment in China. Moreover, this study investigates an association among FPI, CO2 emission, energy consumption, trade openness, and sustainable economic growth. This study uses random effects and generalized least squares (GLS) and panel VAR estimators for data analysis. The results show that China’s economy has a great positive impact on the location and choice of investment in domestic markets in emerging countries and developed countries. In addition, investment in emerging and developed economies has increased the contribution of domestic enterprises and environmental sustainability to the national economy. The further results show that foreign private investment and gross domestic investment have positive impact on sustainable economic growth.

Introduction

     The fundamental objective of the economies (with high GDP per capita) is to accomplish practical fnancial development and government assistance of the economy with mechanical advancement (clean ecological-based advances), improvement of natural strategies to moderate the level CO2 discharge (Yu et al 2020). According to Panayotou (1993), economies (after reached at highest level of income per capita) want to move from worse environmental condition to clean environment to get sustainable economic growth. The three stages of environmental Kuznets curve (EKC) premise shows that when economy moving from traditional agricultural sector to industrial sector then the ratio of environmental degradation is high at stage frst. Finally, the EKC scheme shows that when the economy moves toward administrations area they requests for clean climate suggested that the scale, specialized, and synthesis impacts are the primary parts of the premises of the altered U-molded EKC. The scale impact is identifed with the pre-industrialization stage where expands the degree of pay prompts increment the degree of ecological contamination, in this stage modern area is wasteful and fundamentally dirtying the climate.

Conclusion and policy implications

     It is concluded from the study that the foreign investment has a positive impact on economic growth in short run and long run, respectively. Perhaps it might be because of good economic policies from government of China or the amount of investment increases over time. FPI has also some moral hazards that receipt country usually dependent on investment, aid and donor countries can exploit them by putting some restrictions or harsh terms. So countries should rely on their own resources and chose those policies which provide favors in growth level.

     Moreover, foreign direct investment and gross domestic investment have positive impact in short run and long run, respectively. Moreover, the policies should encourage which increases investment from foreign countries and it has more impact on growth level rather than investment because when foreign direct investment is linked with capital utilization, research and development, technological improvements, and easy market access it increases growth.