Nexus between green logistic operations and triple bottom line: evidence from infrastructure-led Chinese outward foreign direct investment in Belt and Road host countries

Abstract

The Belt and Road initiative (BRI) mainly relies on the traditional and underdeveloped logistical trade routes including the terrestrial and oceanic Silk Road. The poor logistic infrastructure across the BRI region not only restricts trade potential and economic progress but also creates several social and environmental challenges. Therefore, this study investigates the relationship between green logistic operations, economic, environmental, and social indicators of countries along with the BRI. This study provides three key findings using feasible generalized least squares (FGLS) and system generalized method of moments (Sys-GMM) estimation techniques. First, Chinese outward foreign direct investment significantly improves the quality and quantity of green logistic operations in terms of transport infrastructure, customs services, cost, time, tracking, and reliability of international shipments. Second, a higher quality of transport-related infrastructure, customs clearance efficiency, and competency of logistics services significantly mitigate the level of carbon emissions due to the energy conservation in the supply chain process. Moreover, the application of renewable energy resources significantly improves the quality of logistics operations. These results indicate that higher quality of green logistic operations provides efficient infrastructure and greater information sharing among supply chain partners that increase trade volume, growth opportunities, and environmental sustainability. Third, a higher institutional quality helps to mitigate social concerns through improvement in the efficiency of logistic operations. Although BRI regional estimates show significant variations, the overall results imply that BRI participating countries should integrate with ongoing investment projects to promote the quality and quantity of green logistic infrastructure and ensuring environmental stewardship.

Keywords: Belt and Road initiative; Chinese infrastructure-led foreign direct investment; Environmental sustainability; Green logistic operations; Institutional quality; Project management; Triple bottom line.