Next Article in Journal
Decision Support to Sustainable Management of Bottom Trawl Fleet
Previous Article in Journal
An Evolutionary Approach to Adaptive Capacity Assessment: A Case Study of Soufriere, Saint Lucia
Article Menu

Export Article

Open AccessArticle
Sustainability 2016, 8(3), 233;

Economic Growth, Foreign Direct Investment and CO2 Emissions in China: A Panel Granger Causality Analysis

†,* and
School of Economics and Management, Wuhan University, Wuhan 430072, Hubei Province, China
These authors contributed equally to this work.
Author to whom correspondence should be addressed.
Academic Editors: Giuseppe Ioppolo and Marc A. Rosen
Received: 20 December 2015 / Revised: 16 February 2016 / Accepted: 26 February 2016 / Published: 3 March 2016
(This article belongs to the Section Economic, Business and Management Aspects of Sustainability)
Full-Text   |   PDF [232 KB, uploaded 3 March 2016]


Using a sample of province-level panel data, this paper investigates the Granger causality associations among economic growth (GDP), foreign direct investment (FDI) and CO2 emissions in China. By applying the bootstrap Granger panel causality approach (Kónya, 2006), we consider both cross-sectional dependence and homogeneity of different regions in China. The empirical results support that the causality direction not only works in a single direction either from GDP to FDI (in Yunnan) or from FDI to GDP (in Beijing, Neimenggu, Jilin, Shanxi and Gansu), but it also works in both directions (in Henan). Moreover, we document that GDP is Granger-causing CO2 emissions in Neimenggu, Hubei, Guangxi and Gansu while there is bidirectional causality between these two variables in Shanxi. In the end, we identify the unidirectional causality from FDI to CO2 emissions in Beijing, Henan, Guizhou and Shanxi, and the bidirectional causality between FDI and CO2 emissions in Neimenggu. View Full-Text
Keywords: economic growth; foreign direct investment; CO2 emissions economic growth; foreign direct investment; CO2 emissions
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

Share & Cite This Article

MDPI and ACS Style

Peng, H.; Tan, X.; Li, Y.; Hu, L. Economic Growth, Foreign Direct Investment and CO2 Emissions in China: A Panel Granger Causality Analysis. Sustainability 2016, 8, 233.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics



[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top