The Influence of Urbanization and Environmental Factors on the Financial Performance of Retail and Automotive Industries in China

Faisal Mahmood, Wasim Al-Shattarat (), Ruba Hamed, Basiem Al-Shattarat, Kameleddine Benameur, Ahmed Hassanein and Yasean Tahat ()
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Faisal Mahmood: College of Business Administration, Al-Hamd Islamic University, Quetta 87300, Pakistan
Wasim Al-Shattarat: College of Business Administration, Gulf University for Science and Technology, Mubarak Al-Abdullah 32093, Kuwait
Ruba Hamed: College of Business Administration, Alfaisal University, Riyadh 11533, Saudi Arabia
Basiem Al-Shattarat: College of Business Administration, Prince Sultan University, Riyadh 12435, Saudi Arabia
Kameleddine Benameur: College of Business Administration, American University of Kuwait, Safat 13034, Kuwait
Ahmed Hassanein: College of Business Administration, Gulf University for Science and Technology, Mubarak Al-Abdullah 32093, Kuwait
Yasean Tahat: College of Business Administration, Gulf University for Science and Technology, Mubarak Al-Abdullah 32093, Kuwait

Sustainability, 2023, vol. 15, issue 23, 1-28

Abstract: This study probes the intersection of urbanization, environmental degradation, and corporate performance in China’s retail and automotive sectors. Utilizing data from 23 regions spanning 2000–2022, the research elucidates the impacts of urban growth, infrastructure development, and particulate matter 2.5 pollution (PM2.5) on these industries. The study uses panel data from 2000 to 2022 and the corresponding analytical random effect model, along with pre- and post-estimation tests for the main results. The findings reveal that while urban population growth bolsters retail sales, it adversely affects the automotive industry. Urban infrastructure does not influence conventional sectors, yet it negatively impacts online retail sales. PM2.5 pollution depresses retail and automotive sales but boosts online sales, underscoring the rising environmental consciousness among consumers. The urban population significantly moderates the relationship between PM2.5 pollution and sales across sectors, hinting at unique consumption patterns in populated urban areas. This study provides critical insights for policymakers aiming for sustainable economic growth, and encourages further research with more region-specific factors and extended time frames.

Keywords: urban sustainability; urban population growth; urban infrastructure; PM2.5 pollution; financial performance (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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