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Growth effects of economic integration: New evidence from the Belt and Road Initiative

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  • Ma, Shengnan

Abstract

This paper uses the Belt and Road Initiative (B&R), an exogenous innovative model of economic integration proposed by China, to examine the growth effects of economic integration on local economies. From 2013 to 2019, more than 120 countries successively participated in the B&R, which intensified the regional integration and interdependence of B&R countries. Employing a difference-in-differences estimation methodology that exploits the cross-country, cross-time variation in the timing of participation in the Belt and Road Initiative, the author finds that the Belt and Road Initiative materially improved the economic performance of local economies, with particularly strong effects for lower-income countries. This paper also provides suggestive evidence that the growth effects can be interpreted in terms of foreign trade and foreign direct investment inwards.

Suggested Citation

  • Ma, Shengnan, 2022. "Growth effects of economic integration: New evidence from the Belt and Road Initiative," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 753-767.
    • Handle: RePEc:eee:ecanpo:v:73:y:2022:i:c:p:753-767
    DOI: 10.1016/j.eap.2022.01.004
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    Cited by:

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    2. Min Zhao & Qing Chen & Debao Dai & Yaodong Fan & Jiaping Xie, 2024. "The Spillover Effect of Foreign Direct Investment on China’s High-Tech Industry Based on Interprovincial Panel Data," Sustainability, MDPI, vol. 16(4), pages 1-18, February.
    3. Antonio Mihi-Ramirez & Elias Melchor-Ferrer & Yolanda Garcia-Rodriguez, 2022. "Why Do Regions Differ in Growth? The Productivity of the Eurozone and Its Contribution to the Added Value of Its European Neighbors," Sustainability, MDPI, vol. 14(18), pages 1-18, September.
    4. Weiwei Xiao & Qihang Xue & Xing Yi, 2023. "Does the Belt and Road Initiative promote international innovation cooperation?," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-12, December.
    5. Beáta Sz. G. Pató & Gábor Heizler & Márk Herczeg & Gábor Bálint Pató & Al Fauzi Rahmat & Lóránt Dénes Dávid & Imre Varga & Ágnes Csiszárik-Kocsir, 2023. "The Importance of the New Silk Road in the Hungarian Automotive Supply Chain," Sustainability, MDPI, vol. 15(23), pages 1-14, November.
    6. Gengzhi Huang & Hang Li & Siyue Chen & Hongou Zhang & Biao He, 2024. "Dynamic Analysis of Regional Integration Development: Comprehensive Evaluation, Evolutionary Trend, and Driving Factors," Land, MDPI, vol. 13(1), pages 1-26, January.
    7. Xuejun Wang & Rongrong Cui & Xi Tian & Jiarong Qian, 2023. "The Belt and Road initiative and food consumption in countries along the route," Agribusiness, John Wiley & Sons, Ltd., vol. 39(S1), pages 1624-1646, December.
    8. Bo Qin & Dongmei Zeng & Angang Gao, 2022. "Convergence effect of the Belt and Road Initiative on income disparity: evidence from China," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-16, December.
    9. Wang, Mengjiao & Liu, Jianxu & Rahman, Sanzidur & Sun, Xiaoqi & Sriboonchitta, Songsak, 2023. "The effect of China’s outward foreign direct investment on carbon intensity of Belt and Road Initiative countries: A double-edged sword," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 792-808.

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    More about this item

    Keywords

    Economic integration; Economic growth; The Belt and Road Initiative; DID;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • F15 - International Economics - - Trade - - - Economic Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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