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China’s belt and road initiative and regional perceptions of China

Author

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  • John O’Trakoun

    (Ford Motor Company)

Abstract

China’s growing outward investment in Asia-Pacific is motivated by the potential for economic gains, but could also affect regional geopolitical risk. Using survey data from 2005 to 2016, we show that an increase in Chinese FDI in a country improves respondents’ perceptions of Chinese influence on their country. We also show that perceptions of China are correlated with future business confidence in Asia-Pacific countries. With China advancing plans for further regional investment, notably through the Belt and Road Initiative, the economic and business outlook for Asia-Pacific could improve significantly, adding to existing advantages from regional economic and demographic trends.

Suggested Citation

  • John O’Trakoun, 2018. "China’s belt and road initiative and regional perceptions of China," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 53(1), pages 17-24, January.
    • Handle: RePEc:pal:buseco:v:53:y:2018:i:1:d:10.1057_s11369-017-0062-0
    DOI: 10.1057/s11369-017-0062-0
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    Cited by:

    1. Yang, Yiwen & Lin, Chinho, 2021. "Impact of the “Belt and Road Initiative” on machinery production networks," Economic Modelling, Elsevier, vol. 104(C).

    More about this item

    Keywords

    China; Belt and road; FDI; Perception; Business risk;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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