IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0234057.html
   My bibliography  Save this article

Impact of natural-resource dependence on foreign contracting projects of China: A spatial panel threshold approach

Author

Listed:
  • Yu Sun
  • Huaping Sun
  • Lizhen Chen
  • Farhad Taghizadeh-Hesary
  • Guimei Zhao

Abstract

The proposal of the “Belt and Road” initiative has had a positive and far-reaching impact on the economic and social development of countries and regions along the route and has provided good opportunities and conditions for the development of China’s foreign contracted projects. In the present study, in view of the heterogeneous characteristics and spatial correlation of countries along the Belt and Road, panel data of 46 contracted projects in China along the Belt and Road from 2008 to 2017 were used to empirically study the spatial characteristics of resource heterogeneity and outsourcing projects in the host country from the perspectives of spatial correlation and spatial heterogeneity. The results indicated that China had significant spatial agglomeration effects, natural restraining effects, and spatial spillover effects on the contracting projects along the Belt and Road, and the marginal impact in low-income countries exhibited a “broken line” relationship. Corresponding suggestions were provided for Chinese enterprises contracting projects involving Belt and Road countries. The databases of BRI need to be established, and ensure green investment efficiency.

Suggested Citation

  • Yu Sun & Huaping Sun & Lizhen Chen & Farhad Taghizadeh-Hesary & Guimei Zhao, 2020. "Impact of natural-resource dependence on foreign contracting projects of China: A spatial panel threshold approach," PLOS ONE, Public Library of Science, vol. 15(6), pages 1-11, June.
    • Handle: RePEc:plo:pone00:0234057
    DOI: 10.1371/journal.pone.0234057
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0234057
    Download Restriction: no
    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0234057&type=printable
    Download Restriction: no
    File URL: https://libkey.io/10.1371/journal.pone.0234057?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Wenjie Chen & Heiwai Tang, 2014. "The Dragon Is Flying West: Micro-level Evidence of Chinese Outward Direct Investment," Asian Development Review, MIT Press, vol. 31(2), pages 109-140, September.
    2. Brian J. Aitken & Ann E. Harrison, 2022. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 6, pages 139-152, World Scientific Publishing Co. Pte. Ltd..
    3. M. Ayhan Kose & Eswar Prasad & Kenneth Rogoff & Shang-Jin Wei, 2009. "Financial Globalization: A Reappraisal," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 56(2), pages 143-197.
    4. Sun, Yu & Chen, Lizhen & Sun, Huaping & Taghizadeh-Hesary, Farhad, 2020. "Low-carbon financial risk factor correlation in the belt and road PPP project," Finance Research Letters, Elsevier, vol. 35(C).
    5. Sun, Huaping & Edziah, Bless Kofi & Sun, Chuanwang & Kporsu, Anthony Kwaku, 2019. "Institutional quality, green innovation and energy efficiency," Energy Policy, Elsevier, vol. 135(C).
    6. Zhao, Xiaomeng & Liu, Chuanjiang & Sun, Chuanwang & Yang, Mian, 2020. "Does stringent environmental regulation lead to a carbon haven effect? Evidence from carbon-intensive industries in China," Energy Economics, Elsevier, vol. 86(C).
    7. Beata Smarzynska Javorcik, 2004. "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages," American Economic Review, American Economic Association, vol. 94(3), pages 605-627, June.
    8. Miao, Zhuang & Chen, Xiaodong & Baležentis, Tomas & Sun, Chuanwang, 2019. "Atmospheric environmental productivity across the provinces of China: Joint decomposition of range adjusted measure and Luenberger productivity indicator," Energy Policy, Elsevier, vol. 132(C), pages 665-677.
    9. Taghizadeh-Hesary, Farhad & Yoshino, Naoyuki, 2019. "The way to induce private participation in green finance and investment," Finance Research Letters, Elsevier, vol. 31(C), pages 98-103.
    10. Pollio, Gerald, 1998. "Project finance and international energy development," Energy Policy, Elsevier, vol. 26(9), pages 687-697, August.
    11. Peter Buckley, 2004. "The Role of China in the Global Strategy of Multinational Enterprises," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 2(1), pages 1-25.
    12. Lawrence Friedman, 1956. "A Competitive-Bidding Strategy," Operations Research, INFORMS, vol. 4(1), pages 104-112, February.
    13. Hall, Stephen & Roelich, Katy E. & Davis, Mark E. & Holstenkamp, Lars, 2018. "Finance and justice in low-carbon energy transitions," Applied Energy, Elsevier, vol. 222(C), pages 772-780.
    14. Miao, Zhuang & Baležentis, Tomas & Shao, Shuai & Chang, Dongfeng, 2019. "Energy use, industrial soot and vehicle exhaust pollution—China's regional air pollution recognition, performance decomposition and governance," Energy Economics, Elsevier, vol. 83(C), pages 501-514.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Philipp Harms & Pierre-Guillaume Méon, 2013. "The Growth Effects of Greenfield Investment and Mergers and Acquisitions: Econometric Investigation and Implication for MENA Countries," Working Papers 794, Economic Research Forum, revised Nov 2013.
    2. Alfaro, Laura & Charlton, Andrew, 2006. "International financial integration and entrepreneurship," LSE Research Online Documents on Economics 19796, London School of Economics and Political Science, LSE Library.
    3. Kose, M. Ayhan & Prasad, Eswar & Rogoff, Kenneth & Wei, Shang-Jin, 2010. "Financial Globalization and Economic Policies," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4283-4359, Elsevier.
    4. Han, Wontae & Wang, Jian & Wang, Xiao, 2022. "FDI and firm productivity in host countries: The role of financial constraints," Journal of International Money and Finance, Elsevier, vol. 124(C).
    5. Philipp Harms & Pierre-Guillaume Méon, 2011. "An FDI is an FDI is an FDI? The growth effects of greenfield investment and mergers and acquisitions in developing countries," Working Papers 11.10, Swiss National Bank, Study Center Gerzensee.
    6. Philipp Harms & Pierre-Guillaume Méon, 2014. "Good and bad FDI: The growth effects of greenfield investment and mergers and acquisitions in developing countries," Working Papers CEB 14-021, ULB -- Universite Libre de Bruxelles.
    7. Claudia M. Buch & Jörn Kleinert, 2007. "Multinational Firms and New Protectionisms," IAW Discussion Papers 33, Institut für Angewandte Wirtschaftsforschung (IAW).
    8. Sun, Yu & Chen, Lizhen & Sun, Huaping & Taghizadeh-Hesary, Farhad, 2020. "Low-carbon financial risk factor correlation in the belt and road PPP project," Finance Research Letters, Elsevier, vol. 35(C).
    9. Laura Alfaro & Andrew Charlton, 2007. "International Financial Integration and Entrepreneurial Firm Activity," NBER Working Papers 13118, National Bureau of Economic Research, Inc.
    10. Christian Fons-Rosen & Sebnem Kalemli-Ozcan & Bent E. Sørensen & Carolina Villegas-Sanchez & Vadym Volosovych, 2012. "Where are the Productivity Gains from Foreign Investment? Evidence on Spillovers and Reallocation from Firms, Industries and Countries," DEGIT Conference Papers c017_064, DEGIT, Dynamics, Economic Growth, and International Trade.
    11. Hoxha, Indrit & Kalemli-Ozcan, Sebnem & Vollrath, Dietrich, 2013. "How big are the gains from international financial integration?," Journal of Development Economics, Elsevier, vol. 103(C), pages 90-98.
    12. Lin, Kang & Tian, Kailan & Gao, Xiang & Zhao, Yu & Yang, Cuihong, 2024. "Responses of China's cross-border investors to domestic environmental regulations," Energy Economics, Elsevier, vol. 131(C).
    13. Wang, Jue & Liu, Xiaming & Li, Xiaoying, 2009. "A dual-role typology of multinational subsidiaries," International Business Review, Elsevier, vol. 18(6), pages 578-591, December.
    14. Guo, Qiu-tong & Dong, Yong & Feng, Biao & Zhang, Hao, 2023. "Can green finance development promote total-factor energy efficiency? Empirical evidence from China based on a spatial Durbin model," Energy Policy, Elsevier, vol. 177(C).
    15. Laura Alfaro & Sebnem Kalemli‐Ozcan & Selin Sayek, 2009. "FDI, Productivity and Financial Development," The World Economy, Wiley Blackwell, vol. 32(1), pages 111-135, January.
    16. M Ayhan Kose & Eswar Prasad & Kenneth Rogoff & Shang-Jin Wei, 2009. "Financial Globalization: A Reappraisal," IMF Staff Papers, Palgrave Macmillan, vol. 56(1), pages 8-62, April.
    17. Massimo Colombo & Annalisa Croce & Samuele Murtinu, 2014. "Ownership structure, horizontal agency costs and the performance of high-tech entrepreneurial firms," Small Business Economics, Springer, vol. 42(2), pages 265-282, February.
    18. Sanjaya Malik, 2015. "Conditional technology spillovers from foreign direct investment: evidence from Indian manufacturing industries," Journal of Productivity Analysis, Springer, vol. 43(2), pages 183-198, April.
    19. Maria Cipollina & Giorgia Giovannetti & Filomena Pietrovito & Alberto F. Pozzolo, 2012. "FDI and Growth: What Cross-country Industry Data Say," The World Economy, Wiley Blackwell, vol. 35(11), pages 1599-1629, November.
    20. Sourafel Girma & Yundan Gong & Holger Görg, 2016. "Foreign Direct Investment, Access to Finance, and Innovation Activity in Chinese Enterprises," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT Volume 53: World Scientific Studies in International Economics, chapter 5, pages 79-94, World Scientific Publishing Co. Pte. Ltd..

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:plo:pone00:0234057. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.