Does the rise of China promote the sustainable development of OECD countries? A geopolitical perspective

Zhiyang Shen, Yuntian Zhao, Fatma Guneri, Yiping Yang, Songkai Wang and Haiyan Deng

Resources Policy, 2023, vol. 85, issue PB

Abstract: Trade tensions between China, the United States, and European nations have continually changed in recent years. Geopolitical cooperation and sustainable development have long been major considerations for all nations. Due to its industrial prowess in manufacturing and its leading import-export merchandising activities, China is an important partner for many nations on the international market. The goal of this study via trade and investment between China and the Organization for Economic Co-operation and Development (OECD) nations is to better understand China's influence on green growth and to support policies that increase green productivity. This study assesses green productivity in 38 Organization for Economic Co-operation and Development (OECD) nations from 2000 to 2019 using the by-production model and the Luenberger-Hicks-Moorsteen productivity indicator. Analysis of the effects of trade and investment with China follows. The empirical findings first demonstrate that from 2000 to 2019, green production increased in OECD nations. Second, growth in green productivity is boosted by trade and investment with China. This paper makes the case that it is feasible to achieve sustainable development while minimizing geopolitical risk. This study offers policy recommendations to support green growth and briefly identifies the limits and potential directions for further research.

Keywords: Geopolitical conflict; Resources allocation; Green productivity; Foreign direct investment; International trade (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:85:y:2023:i:pb:s0301420723006074

DOI: 10.1016/j.resourpol.2023.103896

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