A COP28 Perspective: Does Chinese Investment and Fintech Help to Achieve the SDGs of African Economies?

Aimin Zhang (), Moses Nanyun Nankpan (), Bo Zhou, Joseph Ato Forson, Edmund Nana Kwame Nkrumah and Samuel Evergreen Adjavon
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Aimin Zhang: School of International Business Communication, Dongbei University of Finance and Economics, 217 Jian Shan Street, Sha He Kou District, Dalian 116025, China
Moses Nanyun Nankpan: School of Public Finance and Taxation, Dongbei University of Finance and Economics, 217 Jian Shan Street, Sha He Kou District, Dalian 116025, China
Bo Zhou: School of Public Finance and Taxation, Dongbei University of Finance and Economics, 217 Jian Shan Street, Sha He Kou District, Dalian 116025, China
Joseph Ato Forson: Department of Applied Finance and Policy Management, School of Business, University of Education, Winneba P.O. Box 25, Ghana
Edmund Nana Kwame Nkrumah: Doctoral in Business Administration Unit, Noble International Business School, No. 9 Arko Lane, South Legon, Burma Camp, Accra P.O. Box BC 212, Ghana
Samuel Evergreen Adjavon: Department of Applied Finance and Policy Management, School of Business, University of Education, Winneba P.O. Box 25, Ghana

Sustainability, 2024, vol. 16, issue 7, 1-14

Abstract: Scientific consensus affirms human activity, particularly carbon emissions from market participants, drives global warming. Foreign investment, crucial for sustainability in developing nations, now faces scrutiny regarding its impact on environmental quality in emerging economies. This study examines the influence of Chinese Outward Foreign Direct Investment (OFDI) and fintech on environmental conditions in the top five Chinese-invested African economies, alongside factors such as energy consumption, economic performance, and unemployment affecting CO 2 pollution. Quarterly data from 2006–2021 confirm cointegration among variables via panel unit root and cointegration tests. Panel ARDL method estimates coefficients for short and long-run effects. Our findings reveal: (1) A 1% increase in Chinese investment leads to a 0.56% decrease in CO 2 emissions, supporting its positive environmental impact. (2) Fintech adoption also demonstrates a beneficial effect, with a 1% increase associated with a 0.18% reduction in CO 2 levels. (3) Total energy consumption, as expected, has a detrimental impact, causing a 0.92% increase in CO 2 emissions with a 1% rise. (4) Interestingly, economic growth fosters environmental sustainability, while unemployment correlates negatively with it. These findings suggest that targeted Chinese investments and fintech adoption can aid in mitigating CO 2 pollution in African economies while balancing economic considerations.

Keywords: sustainability; Chinese OFDI; fintech; top 5 Chinese-invested African economies; panel ARDL (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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