Effect of Financial Development, Foreign Direct Investment, Globalization, and Urbanization on Energy Consumption: Empirical Evidence From Belt and Road Initiative Partner Countries
This research aimed to determine the dynamic endogeneity nexus among energy consumption (EC), financial development (FD), foreign direct investment (FDI), globalization (GI), and urbanization (URBAN). The study used 64 countries’ annual panel data on “the Belt and Road Initiative (BRI)” from 2009 to...
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2022-06-01
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| Series: | Frontiers in Environmental Science |
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| Online Access: | https://www.frontiersin.org/articles/10.3389/fenvs.2022.937834/full |
| _version_ | 1811238016697499648 |
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| author | Atta Ullah Atta Ullah Zhao Kui Chen Pinglu Muhammad Sheraz Muhammad Sheraz |
| author_facet | Atta Ullah Atta Ullah Zhao Kui Chen Pinglu Muhammad Sheraz Muhammad Sheraz |
| author_sort | Atta Ullah |
| collection | DOAJ |
| description | This research aimed to determine the dynamic endogeneity nexus among energy consumption (EC), financial development (FD), foreign direct investment (FDI), globalization (GI), and urbanization (URBAN). The study used 64 countries’ annual panel data on “the Belt and Road Initiative (BRI)” from 2009 to 2019. Moreover, it employed a two-step system GMM, robust and results, that indicates financial development and urbanization are positively correlated with energy consumption, suggesting that these two factors raise the energy demand. Contrastingly, globalization negatively impacts energy demand, implying that global connectivity is essential for BRI countries. Foreign direct investment (FDI) has a positive but insignificant connection with energy consumption. Additionally, the Granger causality test was employed to explore the causal association among the variables, and outcomes reveal a bidirectional causal connection between FD and energy consumption. The study also suggests sustainable energy policy implications, which will be helpful to policymakers and governments for ensuring a balanced, sustainable growth.JEL Code: P48; P25; Q4; F6; G00; E2 |
| first_indexed | 2024-04-12T12:34:31Z |
| format | Article |
| id | doaj.art-ad9ddedf8af244e4aa756ee2393800af |
| institution | Directory Open Access Journal |
| issn | 2296-665X |
| language | English |
| last_indexed | 2024-04-12T12:34:31Z |
| publishDate | 2022-06-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Environmental Science |
| spelling | doaj.art-ad9ddedf8af244e4aa756ee2393800af2022-12-22T03:32:56ZengFrontiers Media S.A.Frontiers in Environmental Science2296-665X2022-06-011010.3389/fenvs.2022.937834937834Effect of Financial Development, Foreign Direct Investment, Globalization, and Urbanization on Energy Consumption: Empirical Evidence From Belt and Road Initiative Partner CountriesAtta Ullah0Atta Ullah1Zhao Kui2Chen Pinglu3Muhammad Sheraz4Muhammad Sheraz5School of Management, Institute of Poverty Reduction and Development, Huazhong University of Science and Technology (HUST), Wuhan, ChinaDepartment of Business Adminstration at ILMA University, Karachi, PakistanSchool of Management, Institute of Poverty Reduction and Development, Huazhong University of Science and Technology (HUST), Wuhan, ChinaSchool of Management, Institute of Poverty Reduction and Development, Huazhong University of Science and Technology (HUST), Wuhan, ChinaDepartment of Business Adminstration at ILMA University, Karachi, PakistanSchool of Economics and Management, China University of Geosciences, Wuhan, ChinaThis research aimed to determine the dynamic endogeneity nexus among energy consumption (EC), financial development (FD), foreign direct investment (FDI), globalization (GI), and urbanization (URBAN). The study used 64 countries’ annual panel data on “the Belt and Road Initiative (BRI)” from 2009 to 2019. Moreover, it employed a two-step system GMM, robust and results, that indicates financial development and urbanization are positively correlated with energy consumption, suggesting that these two factors raise the energy demand. Contrastingly, globalization negatively impacts energy demand, implying that global connectivity is essential for BRI countries. Foreign direct investment (FDI) has a positive but insignificant connection with energy consumption. Additionally, the Granger causality test was employed to explore the causal association among the variables, and outcomes reveal a bidirectional causal connection between FD and energy consumption. The study also suggests sustainable energy policy implications, which will be helpful to policymakers and governments for ensuring a balanced, sustainable growth.JEL Code: P48; P25; Q4; F6; G00; E2https://www.frontiersin.org/articles/10.3389/fenvs.2022.937834/fullfinancial development (FD)globalizationurbanizationforeign direct investment (FDI)energy consumption |
| spellingShingle | Atta Ullah Atta Ullah Zhao Kui Chen Pinglu Muhammad Sheraz Muhammad Sheraz Effect of Financial Development, Foreign Direct Investment, Globalization, and Urbanization on Energy Consumption: Empirical Evidence From Belt and Road Initiative Partner Countries Frontiers in Environmental Science financial development (FD) globalization urbanization foreign direct investment (FDI) energy consumption |
| title | Effect of Financial Development, Foreign Direct Investment, Globalization, and Urbanization on Energy Consumption: Empirical Evidence From Belt and Road Initiative Partner Countries |
| title_full | Effect of Financial Development, Foreign Direct Investment, Globalization, and Urbanization on Energy Consumption: Empirical Evidence From Belt and Road Initiative Partner Countries |
| title_fullStr | Effect of Financial Development, Foreign Direct Investment, Globalization, and Urbanization on Energy Consumption: Empirical Evidence From Belt and Road Initiative Partner Countries |
| title_full_unstemmed | Effect of Financial Development, Foreign Direct Investment, Globalization, and Urbanization on Energy Consumption: Empirical Evidence From Belt and Road Initiative Partner Countries |
| title_short | Effect of Financial Development, Foreign Direct Investment, Globalization, and Urbanization on Energy Consumption: Empirical Evidence From Belt and Road Initiative Partner Countries |
| title_sort | effect of financial development foreign direct investment globalization and urbanization on energy consumption empirical evidence from belt and road initiative partner countries |
| topic | financial development (FD) globalization urbanization foreign direct investment (FDI) energy consumption |
| url | https://www.frontiersin.org/articles/10.3389/fenvs.2022.937834/full |
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