The Impact of China’s FDI in Renewable Energy on Pakistan’s Economy

Qirui Wu

doi:10.54097/yvhpmb43

Authors

Qirui Wu

DOI:

https://doi.org/10.54097/yvhpmb43

Keywords:

FDI; renewable energy; China-Pakistan relationship

Abstract

Foreign direct investment (FDI), as a primary form of contemporary capital globalization, contributes substantially to a nation’s economic growth. Specifically, in China’s FDI initiative in Pakistan, channeling FDI towards renewable energy projects can alleviate Pakistan’s energy deficit and generate extensive economic advantages for the country. This paper examines the effects of FDI in renewable energy on Pakistan, analyzing the country’s location advantage and renewable energy potential, evaluating changes in GDP resulting from China’s investment in renewable energy projects in Pakistan, and identifying economic benefits of FDI. Additionally, this paper summarizes notable renewable energy projects and their development after inflow of FDI from China. The research provides in-depth information on the fundamental components of the projects. Additionally, the paper examines the effects of FDI in renewable energy on Pakistan’s immediate and long-term economic development. The results provide insights on suitable countries for receiving FDI and the impacts both inflow and outflow nations.

Downloads

Download data is not yet available.

References

Ali N and Hussain H. Impact of foreign direct investment on the economic growth of Pakistan. American Journal of Economics, 2017, 7(4): 163-170.

Malik M Z, Baloch M H, Ali B, Khahro S H, Soomro A M, Abbas G and Zhang S. Power supply to local communities through wind energy integration: an opportunity through China-Pakistan economic corridor (CPEC). IEEE Access, 2021, 9, 66751-66768.

Luqman M, Ahmad N, and Bakhsh K. Nuclear energy, renewable energy and economic growth in Pakistan: evidence from non-linear autoregressive distributed lag model. renewable energy, 2019, 139: 1299-1309.

European Wind Energy Association. The economics of wind energy. EWEA, 2009.

Zhang Y, Lin Y, Wang J and Gao Y. A new species of the genus Pseudourostyla (Hymenoptera, Braconidae, Pteropodinae) from China. Research on China’s Trade and Investment Risks to Pakistan. Business Exhibition Economics 2022, 14: 173-176.

Zhang L. Advantages, Challenges and Prospects Analysis of China-Pakistan Electricity Cooperation. Foreign Economic and Trade Practice, 2019, 09: 32-35.

Sheikh M A. Energy and renewable energy scenario of Pakistan. Renewable and Sustainable Energy Reviews, 2010, 14(1): 354-363.

Sheikh M A. Renewable energy resource potential in Pakistan. Renewable and Sustainable Energy Reviews, 2009, 13(9): 2696-2702.

Zang X and Zhu X. Strategic Value and Challenges of China-Pakistan Economic Corridor. Theoretical Perspectives, 2017, 02: 72-76.

Pregger T, Nitsch J and Naegler T. Long-term scenarios and strategies for the deployment of renewable energies in Germany. Energy Policy, 2013, 59: 350-360.