The Threshold Level of Economic Growth in BRI and Non-BRI Developing Countries for Better Environmental Quality

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Yee-Qin Kon
Mui-Yin Chin
Sheue-Li Ong


This  study  investigates  the  nexus  between  economic  growth  and  carbon  dioxide  (CO2)  emissions.  Specifically,  this  study  employs  a  dynamic  panel  threshold model  to  identify  and  compare  the  threshold  levels  of  economic  growth  between developing countries participating and not participating in the Belt and Road Initiative (BRI).  The  findings  signify  a  nonlinear  relationship  between  the  sampled  countries’ economic growth and their CO2 emissions in both categories. Furthermore, the result of dynamic panel threshold model reveals that the threshold level of economic growth, in the category of BRI developing countries, was lower (US$ 887.49) as compared to non-BRI developing  countries  (US$  1358.57).  This  implies  that  the  impact  of  economic  growth in developing countries participating in the BRI was less harmful to the environment, and  that  these  countries  are  more  alert  to  environmental  issues  once  the  threshold  of their gross domestic product per capita was achieved. Hence, Chinese authorities should put in more effort in facilitating sustainable infrastructure development to attract more developing countries to join the BRI to mitigate environmental degradation.


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