Insights on China's economic and environmental dynamics for integrating growth and sustainability

Abstract

Sustainable economic growth is vital for China to improve living standards, reduce poverty, enhance infrastructure, foster green innovation, reduce consumption of natural resources, maintain social stability, and increase global competitiveness. This paper uses the ARDL model to study the relationships over the short- and long-term between China's population dynamics, inflation, foreign direct investment, economic development, and rising carbon dioxide emissions from 1990 to 2023. The findings indicate that population expansion has a short-term negative influence on economic development, while CO2 emissions, foreign direct investment, and inflation all have beneficial effects. Population growth, CO2 emissions, and inflation all contribute positively to economic development, while FDI has long-term detrimental effects. By prioritizing policies that promote environmentally friendly practices, encourage domestic innovation, and foster inclusive economic growth, China can achieve long-term prosperity while mitigating adverse impacts on the environment and society.

Keywords

• Foreign direct investment
• Economic growth
• CO2 emissions
• Inflation
• Population