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Belt and Road Initiative and Sustainable Development: Evidence from Bangladesh

Author

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  • Syeda Nasrin Akter

    (Institute of History of Science and Technology, Nanjing University of Information Science & Technology, Nanjing 210044, China
    School of Law and Public Affairs, Nanjing University of Information Science & Technology, Nanjing 210044, China)

  • Shuoben Bi

    (Institute of History of Science and Technology, Nanjing University of Information Science & Technology, Nanjing 210044, China
    School of Geographical Sciences, Nanjing University of Information Science & Technology, Nanjing 210044, China)

  • Mohammad Shoyeb

    (Department of Business Administration, Bangladesh Islami University, Dhaka 1214, Bangladesh)

  • Muhammad Salah Uddin

    (Department of Economics, Sakarya University, 54050 Sakarya, Türkiye)

  • Md. Mozammel Haque

    (School of Ecology and Applied Meteorology, Nanjing University of Information Science & Technology, Nanjing 210044, China)

Abstract

The Belt and Road Initiative (BRI) prioritizes infrastructure investment to enhance regional connectivity and foster sustainable economic development. Therefore, this empirical study aims to examine the impact of the BRI, specifically through Chinese foreign direct investment (CFDI) on sustainable growth in Bangladesh. The study employs the Mann–Kendall trend analysis and the generalized method of moments (GMM). For the Mann–Kendall trend analysis, sectoral FDI and output data from four major industrial sectors, obtained from Bangladesh Bank and CEIC for the period 1996–2020, are used to analyze trends in industrial development. Additionally, to assess the BRI’s role in sustainable development, this study compares green gross domestic product (GGDP) and gross domestic product (GDP) using a GMM analysis of CFDI inflows across 16 industrial sectors from 2013 to 2022, sourced from various databases. Findings reveal that CFDI significantly contributes to domestic industrial growth, particularly in the manufacturing and construction sectors. Although Bangladesh joined the BRI in 2016, a notable surge in CFDI appears from 2011–2012, partially driven by Bangladesh’s economic liberalization policies, and reflects early strategic investment consistent with China’s expanding economic diplomacy, which was later formalized under the BRI framework. The two-step system GMM results demonstrate that CFDI has a stronger impact on GGDP (0.0350) than on GDP (0.0146), with GGDP showing faster convergence (0.6027 vs. 0.1800), highlighting more robust and rapid sustainable growth outcomes. This underscores the significant Chinese investment in green sectors in Bangladesh. The study also demonstrates that the BRI supports the achievement of Sustainable Development Goals (SDGs) 7 (green energy) and 9 (sustainable infrastructure). These insights offer valuable direction for future research and policy, suggesting that Bangladesh should prioritize attracting green-oriented CFDI in sectors like energy, manufacturing, and construction, while also strengthen.

Suggested Citation

  • Syeda Nasrin Akter & Shuoben Bi & Mohammad Shoyeb & Muhammad Salah Uddin & Md. Mozammel Haque, 2025. "Belt and Road Initiative and Sustainable Development: Evidence from Bangladesh," Sustainability, MDPI, vol. 17(14), pages 1-26, July.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:14:p:6234-:d:1696718
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