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Does Belt and Road Initiative attract Cross‐Border M&As from other countries?

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  • Chaoqun Zhan
  • Hanxi Wang
  • Chenxue Hou

Abstract

This article examines how the Belt and Road Initiative (BRI) affects Cross‐Border M&As (CMAs) inflows to countries along the Belt and Road routes (BRI countries) from non‐BRI countries. We conduct a difference‐in‐differences estimation with a control group constructed through propensity score matching. We find that the BRI significantly reduces CMAs from non‐BRI countries to BRI countries. The results are robust to various concerns and specifications. We uncover two important mechanisms driving the results: the increased CMAs within BRI countries and the potential debt risks. We also find heterogeneous effects across countries.

Suggested Citation

  • Chaoqun Zhan & Hanxi Wang & Chenxue Hou, 2024. "Does Belt and Road Initiative attract Cross‐Border M&As from other countries?," The World Economy, Wiley Blackwell, vol. 47(5), pages 1916-1942, May.
    • Handle: RePEc:bla:worlde:v:47:y:2024:i:5:p:1916-1942
    DOI: 10.1111/twec.13489
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