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Abstract
Foreign direct investment (FDI) can reshape landscapes in developing countries, but its impact remains unclear. This study examines how China’s Belt and Road Initiative (BRI) FDI impacts land-cover and land-use change in Southeast Asia, a key trade partner receiving significant Chinese infrastructure investments. Focusing on areas with BRI investments from 2008 to 2018, we utilize satellite data to analyze land-use changes across Southeast Asia (Cambodia, Laos, Myanmar, Vietnam), particularly urban growth and deforestation. We find that districts that received BRI investment experienced nearly a 5% greater rate of deforestation than the regional average, with a 001% and 0.007% in tree cover associated with a 1% increase in Chinese investment. Districts receiving investments also showed greater increases in cropland and grasslands. While statistical tests indicate the immediate land-cover changes are modest, our findings suggest potential future environmental consequences in Southeast Asia, particularly with ongoing economic development.
DOI
https://doi.org/10.31223/X5TD68
Subjects
Environmental Indicators and Impact Assessment, Environmental Sciences, Environmental Studies, Natural Resource Economics
Keywords
Southeast Asia, land-cover change, foreign direct investment, Belt and Road Initiative, Southeast Asia
Dates
Published: 2024-06-22 00:07
Last Updated: 2024-06-22 07:07
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