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Has the Belt and Road Initiative Brought New Opportunities to Countries Along the Routes to Participate in Global Value Chains?

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  • Zhiheng Wu
  • Guisheng Hou
  • Baogui Xin

Abstract

Using the data of 40 host countries during 2010 to 2017, we investigate whether the Belt and Road Initiative (BRI) has brought new opportunities to countries along the routes to participate in global value chains (GVCs). We employ a difference-in-differences (DID) method with propensity score matching (PSM) to solve the self-selection bias problem. The results indicate that BRI has a significant positive effect on promoting the countries along the routes to participate in GVCs, and the effect is lagging and fluctuant. Specifically, we find that the promotion effects are particularly significant in the second year of the BRI’s implementation. The heterogeneity analysis of Belt and Road (BR) countries shows that there remains a significant positive effect on developing BR countries as before, while the opposite is true for developed BR countries.

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  • Zhiheng Wu & Guisheng Hou & Baogui Xin, 2020. "Has the Belt and Road Initiative Brought New Opportunities to Countries Along the Routes to Participate in Global Value Chains?," SAGE Open, , vol. 10(1), pages 21582440209, January.
    • Handle: RePEc:sae:sagope:v:10:y:2020:i:1:p:2158244020902088
    DOI: 10.1177/2158244020902088
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    2. Shengbing He & Huilin Yao & Zhou Ji, 2021. "Direct and Indirect Effects of Business Environment on BRI Countries’ Global Value Chain Upgrading," IJERPH, MDPI, vol. 18(23), pages 1-16, November.
    3. Peizhu Xin & Min Zhao & Yang Bai, 2022. "Does the Belt and Road Initiative Promote Green Innovation Quality? Evidence from Chinese Cities," Sustainability, MDPI, vol. 14(10), pages 1-19, May.
    4. Sidong Zhao & Yiran Yan & Jing Han, 2021. "Industrial Land Change in Chinese Silk Road Cities and Its Influence on Environments," Land, MDPI, vol. 10(8), pages 1-30, July.
    5. Sha Fan, 2023. "Does the Belt and Road Initiative Promote Bilateral Trade? An Empirical Analysis of China and the Belt and Road Countries," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 15(2), pages 190-214, May.
    6. Xiao Wang & Jinming Shi & Jia Li & Yu Chen & Jianxu Liu & Songsak Sriboonchitta, 2023. "Analysis on Trade Competition and Complementarity of High-Quality Agricultural Products in Countries along the Belt and Road Initiative," Sustainability, MDPI, vol. 15(8), pages 1-34, April.
    7. Yang, Yiwen & Lin, Chinho, 2021. "Impact of the “Belt and Road Initiative” on machinery production networks," Economic Modelling, Elsevier, vol. 104(C).

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