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Impacts of OFDI on Host Country Energy Consumption and Home Country Energy Efficiency Based on a Belt and Road Perspective

Author

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  • Xing Zhou

    (Business School, Jiangsu Normal University, Xuzhou 221116, China)

  • Quan Guo

    (School of Economics and Management, Suzhou Polytechinic Institute of Agriculture, Suzhou 215000, China)

  • Ming Zhang

    (School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China)

Abstract

Under the Belt and Road concepts of mutual benefit and win–win cooperation, China is strengthening its energy cooperation with other countries. We used several econometric models and social network analysis models to study the impacts of China’s outward foreign direct investment (OFDI) on the host and home countries. We first examined China’s OFDI location preference and analysed the effects of OFDI on energy consumption in host countries. Meanwhile, we observed the impact of the reverse spillover effect of OFDI on China’s energy efficiency. The results indicate that (1) the impact of China’s OFDI on energy consumption in host countries has been lower than that on neighbouring countries, and increased significantly after 2014. (2) The space network of energy consumption in Belt and Road countries has a strict hierarchical structure. However, it was disbanded by the Belt and Road policy in 2014. The network centres are situated primarily in Middle Eastern and European countries, and the network’s periphery is mainly in South-East and West Asian countries. (3) The reverse spillover effects of OFDI, FDI, domestic R&D absorptive capacity, human capital, and financial development levels are conducive to improving China’s energy efficiency whereas regional professionalism does the opposite.

Suggested Citation

  • Xing Zhou & Quan Guo & Ming Zhang, 2021. "Impacts of OFDI on Host Country Energy Consumption and Home Country Energy Efficiency Based on a Belt and Road Perspective," Energies, MDPI, vol. 14(21), pages 1-25, November.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:21:p:7343-:d:672338
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