Does regional integration matter for sustainable economic growth? Fostering the role of FDI, trade openness, IT exports, and capital formation in BRI countries
IT exports, capital formation, FDI, and trade openness are the key elements to bring sustainable economic growth to any country, since these act as a lifeline to bring sustainability to countries. This study aims to estimate the impact of IT exports, gross capital formation, FDI, and trade openness...
| Main Authors: | , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2021-12-01
|
| Series: | Heliyon |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844021026621 |
| _version_ | 1819175413706915840 |
|---|---|
| author | Mubasher Zaman Chen Pinglu Sayed Irshad Hussain Atta Ullah Ningyu Qian |
| author_facet | Mubasher Zaman Chen Pinglu Sayed Irshad Hussain Atta Ullah Ningyu Qian |
| author_sort | Mubasher Zaman |
| collection | DOAJ |
| description | IT exports, capital formation, FDI, and trade openness are the key elements to bring sustainable economic growth to any country, since these act as a lifeline to bring sustainability to countries. This study aims to estimate the impact of IT exports, gross capital formation, FDI, and trade openness on sustainable economic growth with regional integration of BRI countries using the annual panel data from 2013 to 2018. Moderating variable is regional integration, while the trade freedom index, investment freedom index, real interest rate, and inflation are control variables. The two-step system GMM technique is applied to the sample as the number of moment conditions is greater than the number of parameters. The results suggest that FDI and gross capital formation have a substantial positive impact on economic growth, whereas IT exports and trade openness have a negative, insignificant impact. The overall results suggest that China's outward FDI has boosted the economic growth in countries while trade openness has a negligible since most developing countries need to invest in industrialization and encourage exports based growth. |
| first_indexed | 2024-12-22T20:54:29Z |
| format | Article |
| id | doaj.art-f4b8edf120ba470baae80a4e0c2a5d23 |
| institution | Directory Open Access Journal |
| issn | 2405-8440 |
| language | English |
| last_indexed | 2024-12-22T20:54:29Z |
| publishDate | 2021-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj.art-f4b8edf120ba470baae80a4e0c2a5d232022-12-21T18:12:59ZengElsevierHeliyon2405-84402021-12-01712e08559Does regional integration matter for sustainable economic growth? Fostering the role of FDI, trade openness, IT exports, and capital formation in BRI countriesMubasher Zaman0Chen Pinglu1Sayed Irshad Hussain2Atta Ullah3Ningyu Qian4School of Management, Huazhong University of Science and Technology, Wuhan, ChinaSchool of Management, Huazhong University of Science and Technology, Wuhan, ChinaDepartment of Social Sciences, SZABIST, Karachi, PakistanSchool of Management, Huazhong University of Science and Technology, Wuhan, China; Corresponding author.School of Management, Huazhong University of Science and Technology, Wuhan, China; Corresponding author.IT exports, capital formation, FDI, and trade openness are the key elements to bring sustainable economic growth to any country, since these act as a lifeline to bring sustainability to countries. This study aims to estimate the impact of IT exports, gross capital formation, FDI, and trade openness on sustainable economic growth with regional integration of BRI countries using the annual panel data from 2013 to 2018. Moderating variable is regional integration, while the trade freedom index, investment freedom index, real interest rate, and inflation are control variables. The two-step system GMM technique is applied to the sample as the number of moment conditions is greater than the number of parameters. The results suggest that FDI and gross capital formation have a substantial positive impact on economic growth, whereas IT exports and trade openness have a negative, insignificant impact. The overall results suggest that China's outward FDI has boosted the economic growth in countries while trade openness has a negligible since most developing countries need to invest in industrialization and encourage exports based growth.http://www.sciencedirect.com/science/article/pii/S2405844021026621Sustained economic growthFDITradeICTsRegional integrationTwo-step system generalized method of moments (GMM) |
| spellingShingle | Mubasher Zaman Chen Pinglu Sayed Irshad Hussain Atta Ullah Ningyu Qian Does regional integration matter for sustainable economic growth? Fostering the role of FDI, trade openness, IT exports, and capital formation in BRI countries Heliyon Sustained economic growth FDI Trade ICTs Regional integration Two-step system generalized method of moments (GMM) |
| title | Does regional integration matter for sustainable economic growth? Fostering the role of FDI, trade openness, IT exports, and capital formation in BRI countries |
| title_full | Does regional integration matter for sustainable economic growth? Fostering the role of FDI, trade openness, IT exports, and capital formation in BRI countries |
| title_fullStr | Does regional integration matter for sustainable economic growth? Fostering the role of FDI, trade openness, IT exports, and capital formation in BRI countries |
| title_full_unstemmed | Does regional integration matter for sustainable economic growth? Fostering the role of FDI, trade openness, IT exports, and capital formation in BRI countries |
| title_short | Does regional integration matter for sustainable economic growth? Fostering the role of FDI, trade openness, IT exports, and capital formation in BRI countries |
| title_sort | does regional integration matter for sustainable economic growth fostering the role of fdi trade openness it exports and capital formation in bri countries |
| topic | Sustained economic growth FDI Trade ICTs Regional integration Two-step system generalized method of moments (GMM) |
| url | http://www.sciencedirect.com/science/article/pii/S2405844021026621 |
| work_keys_str_mv | AT mubasherzaman doesregionalintegrationmatterforsustainableeconomicgrowthfosteringtheroleoffditradeopennessitexportsandcapitalformationinbricountries AT chenpinglu doesregionalintegrationmatterforsustainableeconomicgrowthfosteringtheroleoffditradeopennessitexportsandcapitalformationinbricountries AT sayedirshadhussain doesregionalintegrationmatterforsustainableeconomicgrowthfosteringtheroleoffditradeopennessitexportsandcapitalformationinbricountries AT attaullah doesregionalintegrationmatterforsustainableeconomicgrowthfosteringtheroleoffditradeopennessitexportsandcapitalformationinbricountries AT ningyuqian doesregionalintegrationmatterforsustainableeconomicgrowthfosteringtheroleoffditradeopennessitexportsandcapitalformationinbricountries |