Financial, Economic, and Governance Drivers of Energy Intensity in Belt and Road Initiative Nations
- Syeda Tayyaba Ijaz
- tayyaba.phdfin79@iiu.edu.pk
- Researcher, Department of Business Administration, Islamic International University, Islamabad, Pakistan
- Saqlain Kazmi
- saqlain.sshahk@gmail.com
- Lecturer, Department of Management Sciences Sir Syed CASE Institute of Technology, Islamabad, Pakistan.
Submitted
November 22, 2023
Accepted
November 22, 2023
Accepted
November 22, 2023
- Received
- 5th May 2025
- Revised
- 29th August 2025
- Accepted
- 6th October 2025
Abstract
This paper explores the relationship between the financial, economic, and governance factors of energy intensity in Belt and Road Initiative (BRI) countries. Focusing on how to achieve energy efficiency and development, it relies on previous research and ec nometric data to explore the financial and economic factors, environmental trends, and governance indicators that predetermine energy intensity in BRI countries. The study focuses on three crucial dependent variables using an integrated fixed effects regression analysis: 1) energy use per gross domestic product (EU/GDP), 2) industrial value added per industrial manufacturing output (IVA/IMO), and 3) energy use per purchasing power parity (EU PPP). Our findings suggest that the financial factor index (FFI) and economic factor index (EFI) explain energy intensity measures significantly through EU/GDP and EU/PPP, respectively. Partially moderating energy outcomes such as institutional quality (IQ) and governance effectiveness (GE) correspond to the quality of governance. Other interaction terms reveal a pattern between IQ and FFI, particularly the moderating effect of governance on economic factors in EU/GDP (FFI*IQ). This paper highlights the consequences of the sustainable development of energy in BRI countries, implying that energy intensity must be improved efficiently. This is with reference to the interrelationships among the financial and economic systems and governance. Adding another layer to the concept of efficiency, this paper provides a better understanding of sustainable development in the BRI region.
Keywords
Energy outcomes
Belt and Road Initiative
financial factors
economic factors
total debt
environmental factors
governance
institutional quality
This work is licensed under LJB.
- Citation
Ijaz, S. T., & Kazmi, S. (2025). Financial, Economic, and Governance Drivers of Energy
Intensity in Belt and Road Initiative Nations. The Lahore Journal of Business, 13(1), 23-53.
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