AUTHOR=Xiao Zhuopeng , Qamruzzaman Md. 

TITLE=Nexus between green investment and technological innovation in BRI nations: What is the role of environmental sustainability and domestic investment?

JOURNAL=Frontiers in Environmental Science

VOLUME=Volume 10 - 2022

YEAR=2022

URL=https://www.frontiersin.org/journals/environmental-science/articles/10.3389/fenvs.2022.993264

DOI=10.3389/fenvs.2022.993264

ISSN=2296-665X

ABSTRACT=The critical role of technological innovation has been extensively investigated by taking various aspects of macro-fundamentals across the world. While the determents of technological innovation have been investigated predominantly from firms’ perspective, macro fundamentals role has yet to be extensively explored. The motivation of the study is to investigate the effects of green investment, measured by renewable energy, a domestic investment measured by gross capital formation, and environmental sustainability measured by carbon emission, on technological innovation in BRI nations for the period 2000-2021. The study employed a cross-sectional dependency test, unit root test following CADF and CIPS,  error correction-based panel cointegration test, ARDL, CS-ARDL and nonlinear ARDL. Furthermore, the directional causalities were documented by performing the heterogeneous causality test. Taking into account the study finding, it is revealed that green investment and domestic investment are positively connected with technological innovation in BRI nations, while environmental sustainability is exposed negatively and statistically significant to technological innovation. Furthermore, the asymmetric investigation established asymmetric effects from green investment, environmental sustainability, and domestic investment to technological innovation. According to the asymmetric coefficients, the positive and negative shocks of green and domestic investment disclosed positive and statistically significant links with technological innovation, whereas the asymmetric shocks in environmental sustainability unveil adverse ties to technological innovation in BRI nations. The study documented the unidirectional causal effects running from green investment to technological innovation [GITI] and technological innovation to environmental sustainability [TIES]. Furthermore, the study documented bidirectional casualties between domestic investment, foreign direct investment, financial development and technological innovation [TIDI; TIFDI; TIFD]