Research on the Environmental Effects of China’s Outward Foreign Direct Investment (OFDI): Empirical Evidence Based on the Implementation of the “Belt and Road” Initiative (BRI)

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Abstract

Based on the environmental responsibility of the home country against the background of high-quality development and the “double carbon” goal, with the aid of Difference-in-Differences (DIDs), this study discusses the impact of China’s outward foreign direct investment (OFDI) on the environment of the host country. The sample data of China’s OFDI from 2003 to 2020 is used to analyze its impact on the 162 countries before and after the implementation of the “Belt and Road” Initiative (BRI). The results show that the implementation of the BRI can effectively enhance the positive environmental impact of Chinese OFDI in host countries. Further research shows that with the implementation of the BRI, the environmental effects of Chinese OFDI in developing countries have become more significant. Among developing countries in Asia, the BRI has played a significant and positive role in promoting the environmental outcomes of China’s OFDI.

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Liu, Y., & Wang, R. (2022). Research on the Environmental Effects of China’s Outward Foreign Direct Investment (OFDI): Empirical Evidence Based on the Implementation of the “Belt and Road” Initiative (BRI). Sustainability (Switzerland), 14(19). https://doi.org/10.3390/su141912868

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