Green growth, geopolitical risk, and economic policy uncertainty: Evidence from China

This empirical analysis aims to probe the impact of geopolitical risk (GPR) and economic policy uncertainty (EPU) on green growth (GG) in China. In order to achieve this, we make use of time series data from 1990 to 2020. We adopt the novel wavelet quantile correlation (WQC) approach to report time-varying results across quantiles. The key findings from the novel WQC approach delineate that EPU and GPR impede GG in the short- and long-run, whereas, EPU and GPR promote GG in the medium-run. Regarding the policy recommendations, we suggest to impede both EPU and GPR to upsurge long-run GG in China.

Automated summary

This empirical analysis investigates the impact of geopolitical risk and economic policy uncertainty on green growth in China. The study finds that both factors hinder green growth in the short- and long-run, but promote green growth in the medium-run. The policy recommendations suggest curbing economic policy uncertainty and geopolitical risk to foster long-term green growth in China.