Journal Article•
The Belt and Road Initiative and China's Trade Development
About: This article is published in China: An International Journal.The article was published on 2019-01-01 and is currently open access. It has received 3 citations till now. The article focuses on the topics: China.
Citations
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TL;DR: Li et al. as discussed by the authors analyzed the Chinese designs to promote its BRI collaboration through Hong Kong to enhance foreign confidence and ensure that the related institutional transplantation is sustainable in other countries and that it is on par with international standards.
Abstract: When the Chinese government proposed the Belt and Road Initiative (BRI)in 2015, Hong Kong was positioned as a “super-connector” responsible for bridging the mainland and global markets and was planned to integrate into the Guangdong–Hong Kong–Macau Greater Bay Area. The objective of this article is to analyze the Chinese designs to promote its BRI collaboration through Hong Kong to enhance foreign confidence and ensure that the related institutional transplantation is sustainable in other countries and that it is on par with international standards. However, the rise of neighboring cities and the changing Sino–American relationship in recent years has provided uncertainties for the future development of Hong Kong. Due to these factors, this article argues that Hong Kong may not effectively share the functions in the BRI planning designed by the Chinese authorities. Because Hong Kong’s role and how it influences the policy outcomes within the BRI framework have not been thoroughly studied, this article will supplement the current literature vacuum on this specific issue and its future development.
4 citations
TL;DR: In this article , the authors used net primary productivity (NPP) as a unified measure of ecological products, and explored the pattern changes of ecological product trade in countries along the Belt and Road (B&R), from 2013 to 2019 (from the BRI proposal to the outbreak of COVID-19).
Abstract: The Belt and Road Initiative (BRI) was designed to promote economic and trade cooperation between countries along the Belt and Road (B&R), specifically by building an international trade network. Ecological resources are the basis for human survival. Countries along the B&R transform ecological resources into ecological products by production activities. These products can then be used for trade, thereby driving the countries’ economic development. This study uses net primary productivity (NPP) as a unified measure of ecological products, and explores the pattern changes of ecological product trade in countries along the B&R, from 2013 to 2019 (from the BRI proposal to the outbreak of COVID-19). The purpose of the study is to reveal the impact of the BRI on the trade of ecological products. The results show that (1) the trade scale of ecological products in the B&R region has changed significantly. The total volume of traded ecological products increased from 2071.74 to 2631.00 TgC. This represented an increase of about 26.99%, or 7.41% higher than the global average. (2) The spatial distribution pattern of ecological product trade did not change significantly in countries along the B&R. However, the gravity centers of the total and net trade volume of ecological products moved 120.74 km to the northeast and 392.98 km to the southeast, respectively. (3) The trade structure of ecological products in the B&R region, six sub-regions, and most countries remained relatively stable. Only the proportion of the livestock products trade in Mongolia and the proportion of the forest products trade in Bhutan have increased significantly. This finding suggests that the strength and breadth of the construction of unimpeded trade in countries along the B&R still need to further strengthened, in order to accelerate the realization of the vision of the Green Silk Road.
TL;DR: In this paper , the authors explored the influencing factors of China-South Asia trade under the background of the BRI by using gravity model of trade and found that economic growth in China and South Asia, increase of savings rate and improvement of industrialization in South Asia has a significant positive effect on China-south Asia trade.
Abstract: The Belt and Road Initiative (BRI) is a development plan proposed by China that aims to build a new platform for international cooperation and create new drivers of shared development. South Asia is a key area in the Belt and Road Initiative, including eight countries. As the BRI implemented, China’s trade with South Asia has been gradually strengthened. This paper explores the influencing factors of China-South Asia trade under the background of the BRI by using Gravity Model of Trade. The results show that economic growth in China and South Asia, increase of savings rate and improvement of industrialization in South Asia has a significant positive effect on China-South Asia trade. While the development gap between China and South Asia has negative effect on China-South Asia trade.
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TL;DR: In response to the One Belt One Road (OBOR) initiative, China's overseas direct investment (ODI), especially whole or majority-ownership mergers and acquisitions, rose significantly in the belt-road countries, especially the ones along the continental route as discussed by the authors.
379 citations
TL;DR: This paper investigated the effect of the One Belt One Road (OBOR) initiative on China's outward foreign direct investment (OFDI) using a dataset of all host countries for the period of 2010-2015.
Abstract: This paper investigates the effect of the One Belt One Road (OBOR) initiative on China’s outward foreign direct investment (OFDI) using a dataset of all host countries for the period of 2010–2015 The employed econometric technique combines a difference-in-differences estimator with matching techniques The results show that China’s OFDI in OBOR countries is about 40% higher than in non-OBOR countries After the initiative, the OFDI from China increases by 462% in OBOR countries However, after controlling for the heterogeneity across OBOR and non-OBOR countries using the matching approach, the significance of the increasing effect caused by the OBOR initiative disappears We also find the OBOR initiative diminishes the resource-seeking motivation and improves the market-seeking motivation of China’s OFDI Our results cast doubts on the infrastructure-led and institution-based strategy of the OBOR initiative, but support the boosting effect of the OBOR initiative on institutional cooperation and cultural convergence Thus, the OBOR initiative is a sustainable continuation and development of the long tradition of economic, institutional, and cultural convergence with the OBOR countries, rather than a temporary policy shock
61 citations
Journal Article•
59 citations
Posted Content•
TL;DR: In 2013, Chinese President Xi Jinping announced that he wanted to resurrect the legendary Silk Road; he proposed a titanic project to build hundreds of roads, bridges, and railroads to connect China and Europe as mentioned in this paper.
Abstract: In 2013, Chinese President Xi Jinping announced that he wanted to resurrect the legendary Silk Road; he proposed a titanic project to build hundreds of roads, bridges, and railroads to connect China and Europe. In China, the government also speaks of the ‘Belt and Road initiative’ (One Belt, One Road – abbreviated OBOR) to describe the project that will span more than 50 years. OBOR is President Xi Jinping’s most important project and it marks a radical change in China’s foreign policy as it constitutes a new economic model that also aims to strengthen China’s position as an economic superpower. Despite its major impact on international trade and investment, OBOR does not belong to present-day categories of international pacts and treaties. For the first time in its modern history, China is attempting to export its development model, that is, China is relying on massive investment in infrastructure, roads, ports, and railways, at home and abroad, to accelerate industrial development throughout the region. At a time when the globalization of the economy is tilting the balance towards the East, OBOR will redistribute the maps of trade and investment to an extent which this Article assesses.
31 citations
TL;DR: In this paper, the authors implemented the panel data control method to evaluate the stimulative effects of the One Belt, One Road (OBoT) initiative on trade performance in China and constructed a counterfactual of China's trade surplus by exploiting the unobservable common factors that create observable trade balances among other countries.
Abstract: This research implements the panel data control method to evaluate the stimulative effects of the “One Belt, One Road” initiative on trade performance in China We constructed a counterfactual of China’s trade surplus by exploiting the unobservable common factors that create observable trade balances among other countries We also modified the traditional control group selection by extending it to the Elastic-Net method This study found the following: (i) China’s annual trade surplus increased sharply by 1069% on average since 2015 In contrast, analysis of the counterfactual showed that the net exports of China would have remained constant without the stimulation of the “One Belt, One Road” initiative; (ii) These results are robust to exports growth rates and checking by various control group selections; (iii) Although the analysis shows return to an average trading balance, we should not underestimate the benefits of the initiative in the long run
20 citations