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The implications of the New Silk Road Railways on local development

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  • Fang, Ling
  • Kleimann, Martin
  • Li, Yuan
  • Schmerer, Hans-Jörg

Abstract

This paper studies the impact of the Belt and Road Initiative (BRI) on local development in Europe. In particular, we analyze regional treatment effects of the introduction of the China Railway Express on economic growth, employment, and intermodal transport volumes. The commissioning of rail connections under the umbrella of the BRI provides a natural experiment that can be evaluated empirically using causal inference techniques. On the aggregate level, our results show that establishing a new railway connection with China is not systematically associated with short-run economic growth. However, the new railway connections spurred local employment and road freight, i.e. boost intermodal transport. These aggregate findings are supplemented by additional evidence on sector-specific and regional spillover effects. These findings shed light on the increased relevance of BRI infrastructure projects for its future expansions.

Suggested Citation

  • Fang, Ling & Kleimann, Martin & Li, Yuan & Schmerer, Hans-Jörg, 2021. "The implications of the New Silk Road Railways on local development," Journal of Asian Economics, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:asieco:v:75:y:2021:i:c:s1049007821000555
    DOI: 10.1016/j.asieco.2021.101326
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    Cited by:

    1. Jiatao Li & Ari Van Assche & Xiaolan Fu & Lee Li & Gongming Qian, 2022. "The Belt and Road Initiative and international business policy: A kaleidoscopic perspective," Journal of International Business Policy, Palgrave Macmillan, vol. 5(2), pages 135-151, June.
    2. Li, Chunying & Zhang, Jinning & Lyu, Yanwei, 2022. "Does the opening of China railway express promote urban total factor productivity? New evidence based on SDID and SDDD model," Socio-Economic Planning Sciences, Elsevier, vol. 80(C).
    3. Zhang, Yilin & Zhang, Anming & Wang, Kun & Zheng, Shiyuan & Yang, Hangjun & Hong, Junjie, 2023. "Impact of CR Express and intermodal freight transport competition on China-Europe Route: Emission and welfare implications," Transportation Research Part A: Policy and Practice, Elsevier, vol. 171(C).
    4. Piotr Nowak & Malgorzata Kirchner & Adam Kolinski, 2022. "Analysis Of Digitalisation Needs Improving The Supply Chain Efficiency For New Silk Road Transport Corridor," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 31(2), pages 487-503, december.

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    More about this item

    Keywords

    Belt and Road Initiative; Infrastructure; Development;
    All these keywords.

    JEL classification:

    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • F00 - International Economics - - General - - - General

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