Exploring The Interplay Between Chinese Investments,Economic Complexity,Cultural Effects,and Energy Security

The twenty-first century’s main priorities are the liberalization of economies and international collaborations for economic gains,societal well-being,and political interest.China is the world’s fastest-expanding economy.It has proven itself in the international community by meeting vital growth targets.China’s influence has grown significantly due to its expanding economic strength since the nation provides a big market.Numerous countries rely on the Chinese economy for various economic,welfare,and other reasons.China,inspired by the "Ancient Silk Road," launched an extensive infrastructure program with the name "Belt and Road Initiative"(BRI)in 2013 to strengthen regional connectivity and aid countries further.The present study aims to explore the three dimensions within the BRI economies considering the significant involvement of Chinese energy investment in the economies.To begin,this paper explores Chinese investments in BRI in detail.A descriptive analysis of the maximum available Chinese data is performed.According to data,Chinese foreign investment increased dramatically throughout the BRI countries after the initiative was launched.Overall,investment in the energy sector has remained strong throughout the decade.At the same time,China has made significant investments in coal as an energy sector.However,in light of contemporary energy security concerns and environmental sustainability issues,China has prioritized gas and other renewable energy sources.Further,BRI investment is dropping with Chinese global investment,despite a rebound recently.In contrast,China’s worldwide investment outperforms BRI investment.According to statistics,China’s investment reflects an interest in ensuring its energy security.According to the analysis,China should focus more on other opportunities available in BRI nations to re-establish its status as a leader among member countries,helping the economies improve economic development.Moreover,a more dynamic and strategic strategy is necessary to implement net zero emission and COVID policies.The study also emphasizes the role of economic complexity,as it has become an essential component of the modern production system,influencing economic indicators,including the energy market.The sample comprises 21 Belt and Road(BRI)countries from 1996 to 2019.Firstly,the cross-sectional dependency is examined using Breusch-Pagan LM,Pesaran scaled LM,Bias-corrected scaled LM,and Pesaran CD,the findings of which show the presence of CSD in the data.Secondly,findings of the first and second-generation panel unit root tests indicate that the variables are stationary at first difference.Thirdly,the panel cointegration test reveals a long-run relationship between the variables under consideration.Lastly,the findings of fully modified ordinary least square(FMOLS)and panel simultaneous quantile regression(PSQR)imply the positive impact of economic complexity and energy security concerning availability,acceptability,affordability,and develop-ability and a negative impact in relation to energy security accessibility.Following the present study’s findings and the current global scenario,particularly the COVID-19 shock and the RussianUkraine war,this study suggests that BRI nations,in addition to other initiatives,should focus on energy security accessibility by identifying potential local factors for strengthening their energy system.In addition,as the leading economy in the world energy system,China should deconstruct its energy security policy and diversify its energy portfolio to reduce the impact of any external vulnerability and achieve long-term energy security in the region.Lastly,the study tends to explore the impact of the cultural dimension of energy security-a topic which has not been explored yet.Utilizing panel ordinary least square method(OLS),generalized least square(GLS)random effect estimator,and heteroskedasticity identified endogenous variable regression estimators;the study employs a panel framework incorporating 39 BRI countries and 60 countries from a global sample for 1996-2021.Using four different proxies representing cultural dimensions and other demographic and macroeconomic control variables,empirical analyses reveal that power distance and masculinity exacerbate the conditions of energy security,whereas individualism(as opposed to collectivism)and long/short-term orientation(i.e.pragmatism vs traditionalism/conservatism)tend to reduce the likelihood of energy supply security.We find the relationship between uncertainty avoidance and energy security to be unclear.Our study results have significant policy implications for addressing energy issues in general,not simply energy security.In light of our findings,this study proposes policy reforms and global initiatives that are gender-sensitive,incorporate the multidimensional impact of culture on national behaviour,with a focus on reversing the cultural acceptance of a higher degree of unequally distributed power,and create a more inclusive society through pragmatism,thereby contributing to the achievement of the 2030 Agenda’s sustainable development goals.