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Remittance inflow and its impact on green growth in China: Economic and environmental implications of labor mobility

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  • Lingxuan Zhang
  • Xiaomei Lian
  • Sana Ullah

Abstract

This study contributes to the existing body of knowledge by examining the nonlinear impact of remittance inflow on green growth. To analyze the short and long-run estimates, we have relied on the nonlinear autoregressive distributed lag and quantile autoregressive distributed lag models. The use of nonlinear autoregressive distributed lag and quantile autoregressive distributed lag models to analyze the impact of remittance inflow on green growth is an innovative approach that adds to the existing body of knowledge on this topic. The long-run results from the nonlinear autoregressive distributed lag suggest that a positive shock in remittance inflow improves green growth, while a negative shock reduces green growth. Moreover, foreign direct investment, research and development activities, environmental technology, and financial development encourage green growth. In the short run, the remittance inflow improves the green in the nonlinear model only, and foreign direct investment promotes green growth in linear and nonlinear models. The nonlinear quantile autoregressive distributed lag results show that, in the long run, green growth exhibits an asymmetric response to both positive and negative changes in remittance inflow, particularly at higher quantiles. Our findings will suggest appropriate policies to policymakers regarding the effective utilization of remittances to enhance green growth.

Suggested Citation

  • Lingxuan Zhang & Xiaomei Lian & Sana Ullah, 2024. "Remittance inflow and its impact on green growth in China: Economic and environmental implications of labor mobility," Energy & Environment, , vol. 35(5), pages 2846-2862, August.
    • Handle: RePEc:sae:engenv:v:35:y:2024:i:5:p:2846-2862
    DOI: 10.1177/0958305X231186143
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