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Institutional Factors and Green Economic Growth in China: Traversing the Path of Sustainability
Abstract
The work tries to investigate the role of institutions for achieving green economic growth for the Chinese economy by considering the period from 1996- 2021. Besides institutional factors, foreign direct investment, renewable energy consumption, and expenditure on research and development also are considered. The results from the Bounds test show a high degree of long-term relationship. The research investigates the overall impact of governance on green growth and the individual impact of each of the governance indicators. For institutional quality, a positive impact on green economic growth is observed. Within institutional quality it is seen that barring rule of law and control of corruption, all other variables show a positive impact on our dependent variable. With respect to Foreign direct investment it is seen that the impact is negative which means the Pollution haven hypothesis is upheld for Chinese economy. For renewable energy consumption and expenditure incurred on research and development the impact yet again is positive.
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