Impact of chinese foreign direct investment on recipient countries (case of pakistan)
DOI:
https://doi.org/10.20397/2177-6652/2024.v24i00.2760Palabras clave:
Foreign Direct Investment (FDI), China, Pakistan, FDI impact, Economic governanceResumen
Objective: The article investigates the economic impact of Chinese Foreign Direct Investment (FDI) on recipient countries, focusing on Pakistan as a case study. The goal is to analyze how Chinese FDI influences Pakistan's economic development, particularly through the China-Pakistan Economic Corridor (CPEC) and other initiatives.
Methods: The study utilizes data from various sources, including the World Bank, Ministry of Commerce of the People's Republic of China, and Pakistan's Bureau of Statistics. It employs correlation modeling and graphical analysis to examine the relationship between Chinese FDI and Pakistan's GDP growth. The analysis also considers environmental and social impacts, using data from the China Global Investment Tracker.
Results: The findings indicate a strong positive correlation (85%) between Chinese FDI and Pakistan's GDP growth. Chinese investments, particularly in energy and infrastructure, have significantly contributed to the country's economic development. However, some negative impacts, such as increased CO2 emissions and environmental risks, were also identified.
Contribution: This research provides valuable insights into the dual nature of FDI: while it can drive economic growth, it may also have negative environmental consequences. The study recommends that Pakistan's government actively manage incoming FDI by prioritizing eco-friendly projects and renewable energy investments.
Conclusion: The study concludes that Chinese FDI has had a largely positive impact on Pakistan's economy, especially in terms of infrastructure and energy sector development. However, to maximize benefits and minimize environmental harm, the authors suggest that recipient countries, like Pakistan, adopt more strategic policies in managing foreign investments.
Citas
Ahmad, M. (2018, September 19). Energy subsidies, efficiency must for growth. The News International. https://www.thenews.com.pk/print/370347-energy-subsidies-efficiency-must-for-growth
Ahmad, S., Tariq, M., Hussain, T., Abbas, Q., Elham, H., Haider, L., & Li, X. (2020). Does Chinese FDI, climate change, and CO2 emissions stimulate agricultural productivity? An empirical evidence from Pakistan. Sustainability, 12(18), 7485. https://doi.org/10.3390/su12187485
American Enterprise Institute. (2023). China global investment tracker. American Enterprise Institute, the Heritage Foundation. https://www.aei.org/china-global-investment-tracker/
Bezdudnaya, A., Treyman, M., Ksenofontova, T., Pogoreltsev, A., & Smirnov, R. (2022). Forecast of development of regional water supply and sanitation systems considering environmental, economic, and social aspects as exemplified by Saint Petersburg. Revista Gestão & Tecnologia, 22(1), 76-92. doi:https://doi.org/10.20397/2177-6652/2022.v22i1.2345
Cheung, K-Y., & Lin, P. (2004). Spillover effects of FDI on innovation in China: Evidence from the provincial data. China Economic Review, 15(1), 25-44. https://doi.org/10.1016/S1043-951X(03)00027-0
China Daily. (2015, April 22). Backgrounder: China-Pakistan economic corridor. China Daily Information (CDIC). https://www.chinadaily.com.cn/world/2015xivisitpse/2015-04/22/content_20503693.htm
Duan, W., Zhu, S., & Lai, M. (2020). The impact of COVID-19 on China’s trade and outward FDI and related countermeasures. Journal of Chinese Economic and Business Studies, 18(4), 355-364. https://doi.org/10.1080/14765284.2020.1855395
Haier Official website. (2023). Haier in Pakistan. https://www.haier.com/pk/about-haier/haier-pk/
Helpman, E., Melitz, M., & Yeaple, S. R. (2003). Export versus FDI. NBER Working Paper Series No. 9439. National Bureau of Economic Research, Cambridge, MA. https://www.nber.org/system/files/working_papers/w9439/w9439.pdf
Huang, Y., & Xie, L. (2020). 中国对外投资发展的历史回顾、最新形势和趋势展望[Historical review, latest situation and trend outlook of China's outbound investment development]. Globalization, 5, 29-41. https://doi.org/10.16845/j.cnki.ccieeqqh.2020.05.003 (in Chinese)
Jun, W., Zakaria, M., Shahzad, S. J. H., & Mahmood, H. (2018). Effect of FDI on pollution in China: New insights based on wavelet approach. Sustainability, 10(11), 3859. https://doi.org/10.3390/su10113859
Kiseleva, I., Gasparian, M., Karmanov, M., & Kuznetsov, V. (2023). Methods of risk assessment and decision-making in investment projects amid economic instability. Revista Gestão & Tecnologia, 23(1), 57-68. doi:https://doi.org/10.20397/2177-6652/2023.v23i1.2536
Koty, A. C. (2018, April 3). The US-China trade war: What US products are affected. China Briefing. https://www.china-briefing.com/news/us-china-trade-war-us-products-affected/
Kousar, S., Rehman, A., Zafar, M., Ali, K., & Nasir, N. (2018). China-Pakistan economic corridor: A gateway to sustainable economic development. International Journal of Social Economics, 45(6), 909-924. https://doi.org/10.1108/IJSE-02-2017-0059
Lu, S. (2018). Outlook 2018: Apparel industry issues in the year ahead. FASH455 Global Apparel & Textile Trade and Sourcing. https://shenglufashion.com/2018/01/09/outlook-2018-apparel-industry-issues-in-the-year-ahead/
Lun, X., & Han, Y. (2021). 中国对外直接投资有助于沿线国家绿色技术创新吗? [Can China's foreign direct investment help countries along the Belt and Road to innovate green technologies?]. School of Finance, Shanghai Lixin University of Accounting and Finance. https://kns.cnki.net/kcms/detail/detail.aspx?dbcode=CAPJ&dbname=CAPJLAST&filename=KJJB20210903002&uniplatform=NZKPT&v=OXSjCvrZGd_I6Bx-2aj19KJLZUPCauquU0zzjuurlQec_tcmnn3VvxQmw3UJfz_o (in Chinese)
Mangi, F. (2022, September 2). China's funding to Pakistan stands at 30% of foreign debt. Bloomberg. https://www.bloomberg.com/news/articles/2022-09-02/china-s-funding-to-pakistan-stands-at-30-of-foreign-debt
Ministry of Commerce of PRC. (2021). 2020年度中国对外直接投资统计公报 [2020 Statistical bulletin of China's outward direct investment]. http://hzs.mofcom.gov.cn/article/date/202110/20211003207274.shtml (in Chinese)
Niu, X. (2021). 中国OFDI、技术创新与“一带一路”沿线国家经济增长研究 [Research on China's OFDI, technological innovation and economic growth of countries along the "Belt and Road"]. Times of Economy ＆ Trade, 12, 75-78. https://doi.org/10.19463/j.cnki.sdjm.2021.12.016 (in Chinese)
Petrina, O., Stadolin, M., Kovaleva, N., Morozov, V., Maslennikova, E., & Zemskova, A. (2023). El impacto del desarrollo turístico en la globalización de los mercados y la actividad económica. REICE: Revista Electrónica De Investigación En Ciencias Económicas, 10(20), 99–114. https://doi.org/10.5377/reice.v10i20.16029
Prime Minister Office, Board of Investment. (2023). Statistics - Foreign investment. Invest Pakistan. https://invest.gov.pk/statistics
Ray, R., & Simmons, B. A. (2020, December 7). Tracking China’s overseas development finance. Boston University Global Development Policy Center. https://www.bu.edu/gdp/2020/12/07/tracking-chinas-overseas-development-finance/
Riikonen, A. (2019). Decide, disrupt, destroy: Information systems in great power competition with China. Strategic Studies Quarterly, 13(4), 122-145.
Safiullin, M., Yelshin, L., & Sharifullin, M. (2023). Utilizing blockchain for sustainable development of international supply chains amid economic challenges. Revista Gestão & Tecnologia, 23, 243 - 259. doi:https://doi.org/10.20397/2177-6652/2023.v23i4.2717
Schlesinger, J. M., & Ailworth, E. (2018, January 22). U.S. imposes new tariffs, ramping up 'America first' trade policy. Wall Street Journal. https://www.wsj.com/articles/u-s-imposes-trade-tariffs-signaling-tougher-line-on-china-1516658821
Shah, S. (2016, April 10). Big Chinese-Pakistani project tries to overcome Jihadists, droughts and doubts. The Wall Street Journal. https://www.wsj.com/articles/big-chinese-pakistani-project-tries-to-overcome-jihadists-droughts-and-doubts-1460274228
Shahid Khan, T. (2019, July 18). Huawei announces $100m investment in Pakistan. Daily Ausaf. https://dailyausaf.com/en/pakistan/huawei-announces-100m-investment-in-pakistan.html
Smith, N. S. (2021). China's “Major Country Diplomacy”: Legitimation and foreign policy change. Foreign Policy Analysis, 17(2), orab002, https://doi.org/10.1093/fpa/orab002
Stone, R. W., Wang, Y., & Yu, S. (2022). Chinese power and the state-owned enterprise. International Organization, 76(1), 229-250. https://doi.org/10.1017/S0020818321000308
The Pakistan Business Council, Consortium for Development Policy Research. (2019). China Pakistan free trade agreement phase 2: A preliminary analysis. https://cdpr.org.pk/wp-content/uploads/2020/03/China-Pakistan-Free-Trade-Agreement-Phase-2-merged-final.pdf
The State Council of the People's Republic of China. (2006). 更好地实施“走出去”战略 [The "going out" strategy implementation]. The Central People’s Government of the People’s Republic of China. http://www.gov.cn/node_11140/2006-03/15/content_227686.htm (in Chinese)
The World Bank. (2018, March 29). Belt and road initiative. https://www.worldbank.org/en/topic/regional-integration/brief/belt-and-road-initiative
The World Bank. (2022a). CO2 emissions – Pakistan. World Bank Group. https://data.worldbank.org/indicator/EN.ATM.CO2E.KT?locations=PK
The World Bank. (2022b). GDP (current US$) – Pakistan. World Bank Group. https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=PK
The World Bank. (2022c). Individuals using the Internet (% of population) – Pakistan. World Bank Group. https://data.worldbank.org/indicator/IT.NET.USER.ZS?locations=PK
UNCTAD. (2016). Investment flows through offshore financial hubs declined but remain at high level. Global Investment Trends Monitor No. 23. https://unctad.org/system/files/official-document/webdiaeia2016d2_en.pdf
UNCTAD. (2020). Global FDI flows flat in 2019 moderate increase expected in 2020. United Nations Conference on Trade and Development. https://unctad.org/news/global-investment-flows-flat-2019-moderate-increase-expected-2020
UNCTAD. (2021). Global foreign direct investment fell by 42% in 2020, outlook remains weak. United Nations Conference on Trade and Development. https://unctad.org/news/global-foreign-direct-investment-fell-42-2020-outlook-remains-weak
Yu, S. Z. (2021, April 2). Why substantial Chinese FDI is flowing into Africa. The London School of Economic and Political Science. https://blogs.lse.ac.uk/africaatlse/2021/04/02/why-substantial-chinese-fdi-is-flowing-into-africa-foreign-direct-investment/
Yun, Z. (2020). 外商直接投资与中国经济增长的关系研究 [Research on the relationship between foreign direct investment and China's economic growth]. Fuzhou University. https://proxy.library.spbu.ru:6699/KCMS/detail/detail.aspx?dbcode=CMFD&dbname=CMFD201802&filename=1017050443.nh&uniplatform=OVERSEAS_CHS&v=aqDaEw0NPK-TPNS63bdUN63Lv55hyDbStkZwRNUR70fukHSIeTXBaxdYHhlm0nRZ (in Chinese)
Descargas
Publicado
Cómo citar
Número
Sección
Licencia
Derechos de autor 2024 Journal of Management & Technology
Esta obra está bajo una licencia internacional Creative Commons Atribución-NoComercial 4.0.
Os direitos, inclusive os de tradução, são reservados. É permitido citar parte de artigos sem autorização prévia desde que seja identificada a fonte. A reprodução total de artigos é proibida. Em caso de dúvidas, consulte o Editor.
