The Spillover Environmental Benefits of Asia‐Pacific External Economic Policy: Evidence From China‐Africa Cooperation

This paper uses a panel fixed‐effects model to study the impact of Chinese foreign direct investment on the environmental performance of African countries. The analysis uses panel data from 2002 to 2024. The results demonstrate that Chinese FDI significantly improves the Environmental Performance Index (EPI) of African countries, exhibiting robust effects across various specifications. We also emphasise the lagged nature of these environmental effects. Heterogeneity analysis reveals that environmental benefits are more pronounced in Central, Eastern, and Western Africa, as well as in countries with higher levels of economic development. Mechanism tests confirm the influence of scale, structural, and technological effects. Our findings underscore the dual role of Chinese investment in promoting environmental sustainability and offer policy recommendations from multiple perspectives including those of both governments and investors, for optimising external economic cooperation and green investment strategies in the Asia‐Pacific region.